Italy's government is considering stricter penalties for offences involving Artificial Intelligence (AI) tools, such as market manipulation and money laundering, as per a preliminary law bill viewed by Reuters on Tuesday. The draft bill, comprising 25 articles, outlines fundamental principles concerning the "on research, experimentation, development, adoption and application" of AI within Italy, aimed at addressing "the potential impact on fundamental rights" and associated economic and social risks.


While the content of the document remains subject to revisions, it proposes the use of AI tools in areas like healthcare and the legal system, focusing on their implications for employment conditions. It also lays the groundwork for a national AI strategy. The draft seeks to increase penalties for AI-driven market manipulation and designates the use of AI in money laundering as an aggravating factor. Furthermore, it outlines fines for AI-related copyright infringements and introduces a maximum three-year prison sentence for individuals using AI to impersonate others, particularly targeting harmful deepfakes.


Meloni Govt Extending Support Towards AI Initiatives


Italy currently holds the rotating presidency of the Group of Seven (G7) major democracies. Prime Minister Giorgia Meloni has emphasised that AI will be a focal point during the 2024 presidency, leading up to a summit of leaders in mid-June. AI has also emerged as a critical topic within the European Union, with the bloc nearing the adoption of pioneering regulations governing AI tools. These regulations will mandate adherence to specific transparency requirements and EU copyright regulations.


Meloni announced in March her intention to establish an investment fund to support AI initiatives, starting with an initial allocation of 1 billion euros ($1.1 billion). The fund may also secure an additional 2 billion euros from private investors. According to two government sources, Italy's cabinet is likely to approve the bill in principle by the end of April. Subsequently, the proposal will undergo scrutiny and potential amendments in parliament before receiving final approval and implementation.