The Italian Council of Ministers has approved a package of measures covering three areas that are becoming increasingly interconnected within Italy’s digital strategy: implementation of the EU AI Act, strengthening of national cybersecurity and development of digital infrastructure, with particular attention to data centres.

On artificial intelligence, the Government approved legislative measures aimed at aligning the Italian legal framework with Regulation (EU) 2024/1689 – the AI Act. The measures highlighted include a stronger emphasis on human oversight in the use of AI systems and restrictions on the use of real-time remote biometric identification systems.

The initiative forms part of the broader process of adapting Italian law to the new European AI regulatory framework and is particularly relevant for organisations that develop, provide or deploy AI systems, especially where such systems may fall within categories subject to enhanced regulatory requirements. Businesses should therefore assess whether their AI governance arrangements ensure effective human oversight, clear allocation of responsibilities and, in the case of high-risk AI systems, appropriate security and control measures consistent with both the EU and national regulatory frameworks.

In parallel, the Council of Ministers approved a bill aimed at strengthening Italy’s national cybersecurity framework and the protection of national cyberspace. Among the measures announced are the introduction of a definition of “national cyberspace” and the establishment of a Cybersecurity Incentive Fund, intended to support the enhancement of national cybersecurity capabilities.

The initiative further confirms the growing role of cybersecurity as a structural component of national security and business operational resilience. For companies, particularly those already falling within the scope of the NIS2 framework or operating within critical supply chains, the evolving regulatory landscape calls for the progressive strengthening of cyber governance, risk management, incident response and supply-chain security arrangements, also in anticipation of further implementing measures and regulatory requirements.

The Government has also taken action in relation to digital infrastructure, declaring two major data centre projects to be investments of national strategic interest, representing an aggregate investment of approximately EUR 6.8 billion.

This is particularly significant as it confirms the increasing role of data centres in Italy’s industrial and digital policy and, more broadly, in the development of the infrastructure required to support cloud services, artificial intelligence applications and high-performance computing capacity.

Taken together, these measures point to an increasingly integrated approach to AI regulation, cybersecurity and digital infrastructure policy. For businesses, the key implication is that these areas should no longer be treated as separate compliance silos. Instead, organisations should increasingly adopt coordinated digital governance frameworks capable of integrating AI governance, data protection, cybersecurity, operational resilience and technology supply-chain management.