Legislative Proposal
Artificial intelligence test on business solvency
The proposal amends Legislative Decree No. 14 of January 12, 2019, containing the Business Crisis and Insolvency Code, concerning predictive tools and early warning systems based on artificial intelligence techniques.
The proposed mechanism
How the proposed system would work
The proposal would introduce an artificial intelligence system on the digital platforms of the Chambers of Commerce system. On a quarterly basis, the algorithm would automatically assess companies using information already available, including financial statements, changes to corporate rules, and other relevant corporate data.
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Quarterly assessment
The algorithm automatically reviews data already held within the Chambers of Commerce system.
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Potential crisis detected
The process continues only when the test indicates a potential danger of crisis.
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Confidential notification
An automatic and confidential notification is sent to the directors and, where appointed, to the control body or statutory auditor.
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Appropriate measures
The recipients of the notification are then required to take the appropriate measures.
The legislative text
Articles of the Legislative Proposal
The legislative articles drafted by the Research Unit of the Department of Law (Unicampania) to amend and supplement Legislative Decree 14/2019 (Business Crisis and Insolvency Code) are reported below.
Art. 1 (Amendments to Legislative Decree 14/2019)
1. In Article 3, paragraph 4, of Legislative Decree No. 14 of January 12, 2019, after letter d) the following is inserted:
«e) the report of a probability of crisis resulting from the predictive test on the business crisis probability referred to in Art. 5-ter»
2. After Article 5-bis of Legislative Decree No. 14 of January 12, 2019, the following is inserted:
«Art. 5-ter (Artificial intelligence test on business solvency).
1. A predictive test on the probability of a business crisis based on artificial intelligence tools is available on the national electronic platform referred to in Art. 13. The test is executed automatically by the IT system on a quarterly basis based on the available information. If the test highlights the existence of a danger of crisis, the IT system automatically communicates it to the individual entrepreneur, their institor or legal representative, the directors of the corporate entrepreneur, as well as the members of the control body and the statutory auditor, where appointed, also for the purpose of fulfilling the obligations referred to in Art. 25-octies. The test results constitute confidential business information and are not made public on the national electronic platform to creditors and third parties».
3. In Article 25-octies, paragraph 1, of Legislative Decree No. 14 of January 12, 2019, after the words «the existence of the prerequisites referred to in Article 2, paragraph 1, letters a) and b),» the following are added: «or the receipt of the communication referred to in Article 5-ter».
Art. 2 (Implementing provisions and financial coverage)
1. By decree of the Ministry of Enterprises and Made in Italy, the implementing provisions for the measures provided for in Art. 1 are issued.
2. The decree referred to in paragraph 1, to be adopted within one hundred and eighty days from the date of entry into force of this provision, in agreement with the Ministry of Economy and Finance, after consulting the Italian Data Protection Authority (Garante), shall also specify the criteria for periodic updates of the system in relation to technological evolution and govern the methods for protecting corporate data confidentiality, the transparency of the algorithms used, the guarantees against potential classification errors, and the limits of liability in using predictive tools.
3. The implementation of the provisions of this Article must not result in new or increased burdens on public finances. The administrations concerned shall perform the required tasks using the human, material, and financial resources available under current legislation.
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