Italian law adapts to AI Act

Italy passed Legislative Decree No. 179 on 7 October 2026 to align national law with the EU’s AI Act, specifically regulation (EU) 2024/1689. The decree, published in the Gazzetta Ufficiale on 8 October, becomes effective on 23 October 2026.

AI in employment decisions

The decree’s Chapter III introduces rules about using AI in employment decisions. Employers using AI for decisions related to hiring, job changes, or dismissals cannot make such decisions "exclusively on the basis of automated processing." Violations may render these decisions legally invalid, according to EcNews and A&O Shearman.

Requirements for AI use in HR

Three key obligations accompany the rule: informing employees before AI processing, providing a clear explanation of AI-driven decisions upon request, and ensuring GDPR protections remain in place. These include data privacy rights and the right to contest automated decisions.

Italy diverges from GDPR

The Italian decree differs from the GDPR’s Article 22, which allows exceptions for automated decisions if based on a contract, law, or consent. The Italian rule does not recognize consent as an exception and applies to HR decisions regardless of the context. However, candidate screening is not covered as it is not considered a final decision.

Similar rules in EU directives

The directive (EU) 2024/2831, which governs platform work, also requires human oversight for decisions affecting workers. This directive, effective since December 2024, mandates that Member States implement national laws by December 2026.

France’s similar proposal

In France, a draft bill proposes adding a clause to the Labor Code that prohibits employers from using automated decisions to impose disciplinary sanctions. The proposed law, not limited to platform work, aims to prevent AI from influencing workers’ legal situations or choices.

Delayed AI Act requirements

The AI Act’s HR-related requirements—such as human oversight, informing worker representatives, and penalties up to 15 million euros or 3% of global turnover—have been postponed until December 2027. This delay occurs 405 days after the Italian rule took effect.

Implementation steps for Italian entities

EcNews and A&O Shearman outline six steps for Italian employers to comply with the new rules: reviewing AI-driven HR procedures, assigning a person to override AI recommendations, documenting AI outputs and human decisions, preparing explanations for employees, ensuring prior information is provided, and removing clauses that rely on employee consent to justify AI use.