Managing Attorney:
Daniele Ferretti
Avvocato
Attorney-at-law (New York)
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15 December 2025
Within the field of commercial agency law, a new area of discussion is beginning to emerge, attracting particular attention among trade associations representing commercial agents: the impact of artificial intelligence (AI) on agents’ activities and, more broadly, on their relationships with principals.
On the one hand, the most enthusiastic commentators highlight AI’s potential to increase efficiency and profitability. On the other hand, a far more widespread view expresses concern about AI’s potential to replace human agents. In this often polarised debate, however, the legal implications remain largely unexplored.
Against this backdrop, this article provides a concise overview of the issues that may arise under the relevant regulatory framework, particularly Regulation (EU) 2024/1689 on Artificial Intelligence (the “AI Act”) and the recent Italian Law No. 132 of 23 September 2025, which contains provisions and delegations to the Government concerning artificial intelligence.
By way of example, consider a principal that manages its agency network through management software integrated with an AI system capable of identifying an agent’s failure to achieve certain performance targets, assessing the likelihood of improvement and, where the outcome is negative, automatically generating and sending a notice of termination to the agent.
Would such a scenario fall within the scope of AI regulation? If so, what obligations might arise for a principal that relies on AI systems to make decisions affecting a commercial agency relationship?
To answer these questions, it should first be noted that the AI Act also applies to natural and legal persons established within the European Union that use high-risk AI systems. Such systems include, for example, those employed to make decisions affecting not only employment relationships but, in principle, also self-employed working relationships.
Accordingly, a principal using an AI system to make decisions affecting its relationship with a self-employed commercial agent may be subject to a number of obligations, including:
Furthermore, the principal may be subject to an additional obligation to inform the self-employed agent that a high-risk AI system is being used in decisions affecting him or her.
Indeed, the Italian legislation introduced by Law No. 132/2025 imposes similar disclosure obligations on the client—or, more precisely, the principal—for the benefit of self-employed agents who carry out their activities predominantly on a personal basis.
The consequences of non-compliance with these obligations may be significant. The AI Act provides for administrative fines of up to EUR 15 million or, in the case of undertakings, up to 3% of total worldwide annual turnover, whichever is higher.
In conclusion, beyond the oversimplifications that sometimes characterize the debate on the impact of AI on commercial agency relationships, it is important to examine its potential legal and regulatory implications more closely. Principals that make use of AI systems should carefully assess the related compliance obligations. At the same time, it is becoming increasingly important for commercial agents to develop a full understanding of the information rights and other safeguards that the legal framework is progressively extending to individuals whose professional activities are affected by automated decision-making processes. In a technological and regulatory environment that continues to evolve rapidly, obtaining timely and qualified legal advice is therefore essential in order to properly assess the obligations, rights and risks associated with the use of AI systems in the context of commercial agency relationships.
Avv. Ennio Piovesani, Ph.D.
The information contained in this article is provided for general informational purposes only and does not constitute, and is not intended to constitute, legal advice or any other form of professional advice. The content does not take into account the specific circumstances of any individual case and should not be relied upon as a basis for making decisions without obtaining appropriate professional advice.
