Italy Passes AI Law and Cohere Expands Into Europe With Paris Office

AI in Europe Enters a New Phase

Artificial intelligence continues to transform industries across the globe, but in Europe, two major developments are reshaping the conversation around innovation, regulation, and sovereignty. Italy has passed the first national AI law in the European Union, while Canadian AI company Cohere has opened a new office in Paris to expand its presence in Europe. Both events signal a new era for AI in Europe, where growth and governance must progress hand in hand.

Italy Becomes the First EU Country With a Comprehensive AI Law

A Landmark in AI Regulation

Italy has officially enacted the first comprehensive AI law aligned with the EU’s upcoming AI Act. This national legislation introduces clear rules on transparency, human oversight, and accountability, especially in sensitive sectors such as healthcare, education, justice, and employment.

The law requires that all AI systems undergo strict evaluation before deployment, ensuring they meet ethical and safety standards. For example, deepfake misuse or harmful manipulation of AI-generated content could now result in prison sentences of up to five years.

Protecting Children and Privacy

A unique provision in the Italian AI law focuses on child protection. Individuals under the age of 14 must receive parental consent before using AI-driven tools and applications. Privacy rights are also reinforced, with regulators tasked to monitor how data is collected, stored, and used by AI systems.

Funding and Oversight

To support its AI ambitions, the Italian government announced a €1 billion innovation fund to foster AI development, telecommunications, and cybersecurity. Oversight responsibilities will be shared between the national digitalization agency and the cybersecurity authority, creating a dual system of governance to ensure accountability and security.

Cohere Expands to Europe With Paris Office

Strengthening Presence in Europe

In parallel to Italy’s legal milestone, Cohere, one of the world’s fastest-growing AI companies, has announced the opening of a new office in Paris. With a valuation of $6.8 billion, Cohere is positioning itself as a key player in the European AI market.

This expansion aligns with growing demand among European businesses for data-secure and privacy-conscious AI solutions. Cohere’s language models are designed to support enterprise applications, making them attractive to clients in industries where compliance and confidentiality are critical.

Supporting European Sovereignty in AI

Cohere’s arrival in Paris also reflects France’s ambition to become Europe’s AI hub. The French government has emphasized digital sovereignty, aiming to reduce reliance on non-European technologies. By situating operations in Paris, Cohere signals its commitment to serving European clients under local regulations and standards.

The company already collaborates with industry leaders such as LG, Fujitsu, and Oracle, and is expected to expand partnerships across Europe as it scales.

Balancing Growth and Governance

The combination of Italy’s AI law and Cohere’s European expansion shows how Europe is moving toward balanced AI development. On one side, governments are implementing safeguards to ensure ethical and responsible use of AI. On the other, companies are seizing opportunities to grow, innovate, and compete globally.

Analysts believe this dual trend is crucial. Without proper regulation, AI could face backlash and mistrust. Without business expansion and investment, Europe risks falling behind global competitors like the United States and China.

What Comes Next

Italy’s legal framework will likely serve as a blueprint for other EU countries considering similar laws. Meanwhile, Cohere’s presence in Paris will challenge European startups and push larger corporations to accelerate AI adoption.

Together, these moves illustrate Europe’s determination to be not just a regulator of AI, but also an innovator and leader in the field. As 2025 progresses, the interplay between governance and growth will determine the region’s role in the global AI race.