AI News: Italy Sets the Rules for AI in the Workplace

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Law No. 132 (the Italian Artificial Intelligence Act) took effect on 10 October 2025.1 Under the Italian AI Act, at least one implementing decree that defines an “organic framework” for data, algorithms and artificial intelligence (AI)-training methods is due by October 2026. Italy is the first EU country to pass a comprehensive national AI framework, and the law marks a turning point for employers operating in Italy. Now that the legislation is fully applicable, employers are moving from regulatory preparation to concrete compliance and governance decisions regarding the use of AI in the workplace.

Under the EU AI Act (Regulation (EU) 2024/1689),2 AI systems intended for employment decisions are automatically classified as “high-risk” under Article 6 and Annex III. This classification triggers comprehensive obligations, including risk management, data quality controls, technical documentation, record-keeping, transparency to users, and meaningful human oversight.

Consistent with the EU AI Act, the Italian AI Act places the protection of fundamental rights at the center of technological innovation. Transparency, data protection, gender equality, cybersecurity, and accessibility are no longer aspirational principles, but binding requirements shaping how AI may be deployed in the Italian workplace.

What This Means for Employers

When read together with the Transparency Decree (Legislative Decree No. 104/2022),3 the Italian AI Act significantly expands employers’ compliance obligations when AI systems are used in human resources and workforce-management processes, including recruitment, performance evaluation, task allocation, and termination decisions.

Under the law, employers are required to:

Provide employees in advance with clear and comprehensive information about the functioning of AI tools and the data used;
Promptly update such information and provide notice of any material system changes at least 24 hours in…

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