The Italian AI Law – Italy adopts an AI law: one billion for startups and SMEs

Italy has become the first EU country to definitively approve a national law on artificial intelligence, fully aligned with the European AI Act. Undersecretary Butti defined it as a systemic turning point: governance entrusted to ACN and AgID, and above all, one billion euros destined for startups and SMEs active in AI, cybersecurity, and emerging technologies.

The fund focuses on technology transfer and strategic supply chains, seeking to bridge a gap that the numbers clearly illustrate. In 2025, the Italian AI market reached €1.8 billion, growing by 50% over 2024; however, adoption remains highly uneven: only 16.4% of companies with at least ten employees use artificial intelligence technologies. Among large corporations, the share rises to 53.1%, while among SMEs, it stands at just 15.7%.

This is where the new law aims to make a difference: not just rules, but “patient capital” for those who want to innovate without the resources of a multinational corporation. The implicit message is clear: Italy does not want to merely receive the AI Act as a constraint, but transform it into a competitive lever by offering regulatory certainty and fresh funding in the same package.

For those working in the startup world or consulting for SMEs, the real test will be the ability to intercept these funds quickly and effectively. Regional tenders and those managed by CDP will likely become the first testing ground: those who can present concrete, measurable projects aligned with the country’s strategic priorities will have a huge advantage over those who remain stationary waiting for the market to move on its own. The game is being played now, between bureaucracy and real opportunities.