Breaking news

How Norway, Italy And New York Are Redrawing The Rules For Generative AI In Schools

New York City has joined governments and school systems restricting generative AI use by students, following tighter rules introduced in Europe. Norway and Italy have taken different approaches, while the European Union’s AI Act leaves gaps around student-facing AI tools.

Norway Moved First

Norway banned generative AI in primary schools in June, months before New York City announced its restrictions. The ban took effect at the end of August, covers grades one through seven and allows supervised use up to age 16.

Prime Minister Jonas Gahr Støre has argued that unrestricted AI could allow children to bypass essential early stages of learning to read, write and perform basic arithmetic.

Italy Chooses Controlled Access

Italy has taken a narrower approach. Under Law 132/2025, children under 14 have needed parental consent to use AI since October 2025. The permission-based model keeps AI available while placing responsibility on parents, contrasting with Norway’s broader restriction.

The EU’s AI Act Leaves A Gap

The EU AI Act classifies certain education uses as high-risk under Annex III, including AI used for admissions, exam monitoring and learning assessment.

However, the designation does not clearly cover generative AI tools students use directly, such as chatbots that help with homework. A “Digital Omnibus” revision also moved the Annex III compliance deadline to December 2027.

Article 4 is already binding. Since February 2025, companies deploying AI have been required to ensure “sufficient AI literacy,” an approach similar to the literacy requirements New York is introducing.

New York Sets Broad Student Restrictions

New York City has become the largest US school district to adopt comparable limits. Mayor Zohran Mamdani and Schools Chancellor Kamar Samuels announced a one-year moratorium on student-facing generative AI for children from 2-K through eighth grade.

The policy affects nearly 600,000 students, about two-thirds of public school enrollment. More than 38 approved classroom programs that fail new safety requirements will have their AI functions disabled, while companion chatbots will be banned across all grades.

Teachers may use AI for lesson planning but not grading or crisis management. Up to 50,000 high school students can join supervised pilots, limited to five classes per school, while other high school students will receive AI literacy lessons twice a year.

“The tech industry wants us to believe that AI-powered early education is not only inevitable, but necessary,” Mamdani said. “We do not see it that way.”

U.S. Schools Lack A Common Approach

Los Angeles Unified, the nation’s second-largest school district, is temporarily blocking generative AI tools on student devices across all grades while developing a permanent policy. It also banned school-issued devices for its youngest students in June as part of a broader screen-time strategy.

At least 37 US states have issued official AI guidance for schools, but there is no common definition of AI literacy or national agreement on how it should be taught.

Schools Still Face Questions

Michael Mulgrew, president of the United Federation of Teachers, welcomed New York’s screen-time limits but questioned how the Department of Education will verify that purchased software includes adequate safeguards.

Josh Golin, executive director of Fairplay, said a one-year review period is too short and argued that AI companies should demonstrate that their products are safe, effective and not designed to encourage cheating.

AI is already in classrooms, leaving schools and regulators to determine who sets the rules, who bears the risks and whether existing safeguards can protect children.

New York City public school students are scheduled to return to classrooms next week.

EU Agrees On Major Overhaul Of Financial Market Supervision

European Union finance ministers have reached agreement on a sweeping package designed to strengthen oversight of the bloc’s financial markets, in a move aimed at reducing fragmentation and improving the flow of capital across borders.

A Push To Deepen Capital Markets

The Market Integration and Supervision Package, or MISP, would grant the European Securities and Markets Authority direct supervision over major market operators that are currently regulated by national authorities. The reforms are intended to make Europe’s capital markets more integrated, more efficient and better able to channel savings into productive investment.

According to the Irish presidency, the package is meant to help savings and investments move more freely across the European Union, improving access to finance for companies while giving households broader opportunities to earn returns on their savings.

What The Reform Would Change

Under the new framework, ESMA would take direct oversight of key trading venues, clearing houses, securities settlement bodies and crypto-asset service providers. The package would also establish a permanent, independent executive board within the regulator, strengthening its institutional capacity.

Market operators would be able to opt into a new EU-wide operating framework. In parallel, the reforms would seek to make national supervision more consistent and update rules governing trading, transaction completion, investment management and the use of blockchain technology.

Why The Agreement Matters

Supporters of deeper capital markets argue that Europe has long paid a price for regulatory inconsistency. While many rules are harmonised across the bloc, differences in enforcement and supervision have contributed to a patchwork system that can make cross-border investment slower and more costly.

A more integrated framework, proponents say, could lower costs for companies seeking funding and broaden the menu of investment options available to savers and institutional investors alike.

Outstanding Questions Remain

Despite the broad agreement, some important details remain unresolved. Trading venues operated by Deutsche Börse, the company behind the Frankfurt stock exchange, may remain outside ESMA’s direct supervision.

Euronews previously reported that Germany had secured an exemption for Deutsche Börse’s domestically focused trading venues, leaving part of the system under regional supervision. The latest announcement did not clarify whether that arrangement will stand.

A Step Forward For The Savings And Investments Union

Dutch Finance Minister Eelco Heinen welcomed the deal, calling it a major advance for the Capital Markets Union and saying Europe had made more progress in 10 months than in the previous 10 years.

The agreement is an important milestone in the Savings and Investments Union, the EU’s broader effort to channel more of Europeans’ savings into investments that can support growth, innovation and competitiveness across the bloc.

The Future Forbes Realty Global Properties
Uol
Aretilaw firm
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter