Italy has become the first European Union country to fully implement a national regulatory framework covering artificial intelligence (AI) in the workplace, following the entry into force of Law No. 132/2025 on October 10, 2025. This law aligns with the broader EU AI Act and marks a significant shift from preparatory guidance to concrete legal obligations for employers using AI systems in employment-related processes.
Under the new rules, AI systems used in hiring, performance evaluation, task allocation, or termination decisions are automatically classified as high-risk, triggering rigorous compliance requirements. Employers must implement comprehensive risk management, data quality controls, and transparency measures, as well as maintain detailed documentation and ensure meaningful human oversight over automated decision-making. These provisions aim to protect workers’ fundamental rights, prevent discrimination, and ensure accountability in algorithmic processes.
A major emphasis of the legislation is employee awareness and participation. Employers are required to provide workers with clear, accessible information about the functioning and impact of AI tools, including the data used and any significant changes to systems. Trade union representatives must also receive disclosures, and workers must have the opportunity to seek human review and clarification of AI-generated decisions. The law goes beyond mere notification, mandating explanations in plain language so employees can understand how AI affects their work.
Non-compliance carries administrative fines, with penalties potentially increasing over time, and the government has created a dedicated Oversight Committee within the Ministry of Labour to monitor AI’s impact on employment and develop future regulatory strategies. Italy’s approach reflects a broader European effort to balance innovation with worker protection — ensuring that AI systems enhance workplace efficiency without undermining rights, dignity, or fairness.
