Italy launches a comprehensive AI regulatory framework and a €1 billion fund for startups, targeting humanoid robotics, quantum drugs, and national security.

Italy is positioning itself as a primary architect of the European artificial intelligence landscape. By moving beyond the general guidelines of the European Union, the Italian government has implemented a dual-track strategy that combines a rigid legal framework with an aggressive capital injection. The centerpiece of this ambition is Law 132 of 2025, a legislative milestone that seeks to define a specifically Italian path toward technological sovereignty while remaining synchronized with the broader EU AI Act.

The architecture of Law 132/2025

Approved by the Senate on September 18, 2025, Law 132 consists of 28 articles designed to govern the research and deployment of AI systems. Unlike many national responses to AI, which often act as mere echoes of supranational directives, the Italian approach is designed to be complementary. The government has identified critical gaps in the EU AI Act—specifically in areas where the Union lacks jurisdiction—and filled them with national mandates.

These specific domains include national defense, internal security, and criminal liability. By codifying these areas, Italy provides a level of legal certainty that is often missing in the transition from high-level regulation to operational reality. Furthermore, the law addresses the immediate societal threats posed by generative AI, introducing concrete protections against deepfakes and establishing safeguards for copyright holders, ensuring that the digital transition does not come at the expense of intellectual property.

A billion-euro bet on deep tech

Regulation alone does not foster innovation; capital does. To this end, Article 23 of the new law authorizes an investment fund of up to €1 billion. This is not a traditional subsidy program but a strategic deployment of equity and quasi-equity investments. The management of these funds is entrusted to the Fondo di sostegno al venture capital and CDP Venture Capital, the state-backed investment arm tasked with selecting high-potential projects.

The funding is specifically earmarked for innovative small and medium enterprises (SMEs) and startups across various growth stages. While the primary focus is AI, the government is casting a wide net to include enabling technologies. This includes 5G, edge computing, and quantum computing, recognizing that AI cannot reach its full potential without the underlying hardware and connectivity infrastructure to support it.

Strategic sectors and the humanoid frontier

The Italian government has signaled a particular interest in high-frontier technologies. Among the priorities are humanoid robotics and the development of quantum-based pharmaceuticals. By targeting these niches, Italy aims to move away from being a mere consumer of American or Chinese LLMs and instead become a producer of specialized, high-value AI applications. This shift toward vertical AI—where the technology is applied to complex physical or biological problems—represents a strategic pivot toward industrial competitiveness.

Implementing AI in the public sphere

The legislative process moved from theory to practice on June 10, 2026, when the Council of Ministers, under Prime Minister Giorgia Meloni, approved the preliminary implementing decrees of Law 132. These decrees translate the broad principles of the law into operational rules for the state's most critical functions. The government is introducing a system where AI is integrated into the public sector not as a replacement for human judgment, but as a support mechanism.

The reform targets several key pillars of society:

The Italian government is pursuing an anthropocentric approach, ensuring that technology remains a tool at the service of humans rather than a substitute for human responsibility.

In the education sector, the decrees introduce mandatory training to ensure that both teachers and students can navigate AI tools ethically. In the realm of justice and law enforcement, the rules define how the police and judiciary can utilize AI while maintaining the fundamental rights of citizens. Similarly, healthcare is being integrated into this framework to optimize diagnostics and patient care through regulated AI systems.

Balancing innovation with anthropocentrism

The recurring theme in Italy's strategy is the concept of an anthropocentric AI. This philosophy suggests that the drive for efficiency must not override human agency. By embedding this principle into the national law, Italy is attempting to create a stable environment for businesses. For an entrepreneur, this means that the rules of engagement are clear: innovation is encouraged, provided it respects the fundamental rights of the individual and the security of the state.

This balance is intended to attract foreign investment by offering a predictable regulatory environment. While the US often follows a more laissez-faire approach and the EU a precautionary one, Italy is attempting to bridge the gap by providing specific, sector-based rules that allow for rapid experimentation within safe boundaries.

Global implications for international businesses

For companies based in the USA, UK, and other global markets, Italy's move signals a shift in how European nations will handle AI beyond the EU AI Act. While the national regulatory system is aligned with Brussels, the specific focus on defense, security, and criminal liability means that international firms operating in these sectors must look at Italian national law, not just EU regulations.

US and UK firms specializing in humanoid robotics or quantum computing may find Italy an attractive entry point into the European market, given the €1 billion incentive pool and the state's appetite for deep tech. However, the emphasis on copyright protection and deepfake regulation suggests that generative AI companies will face strict compliance requirements regarding data sourcing and output transparency.

In the UK, where the approach to AI has been more flexible and pro-innovation, the Italian model provides a case study in how to implement a structured, state-led investment strategy. For global investors, the involvement of CDP Venture Capital indicates that the Italian state is acting as a strategic partner, potentially reducing the risk for private equity entering the Italian AI ecosystem.

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Sources: Democrata, Avalw, Lamilano ·