Italy has become the first EU country to enact a comprehensive law regulating artificial intelligence, aiming to promote safe and transparent AI usage while emphasizing innovation and privacy. The legislation introduces prison sentences of one to five years for harmful misuse of AI, particularly regarding deepfakes and child access, requiring parental consent for users under 14. The law also protects AI-assisted creative works and allows AI-driven research under strict conditions. While the government aims to steer AI towards public interest, critics argue that the proposed €1 billion support fund for AI and cybersecurity is modest compared to investments from the US and China, raising questions about Italy’s competitive edge in the global AI landscape.