DeepSeek to launch Italy-specific AI chatbot

DeepSeek will launch a country-specific version of its AI chatbot for Italian users and address the issue of “hallucinations” after reaching an agreement with Italy’s Competition Authority (AGCM).

The Hangzhou-based AI firm committed to making its warning about chatbot hallucinations more clear and accessible, following a months-long probe by the AGCM.

DeepSeek also pledged to lower the hallucination rate of its models through technical changes and update its terms and conditions and warnings in Italian.

The company must provide a progress report to regulators within 120 days or face a fine of up to €10 million (US$11.7 million).

Italian authorities began investigating DeepSeek in June 2025 over concerns about insufficient user warnings.

The AGCM is still assessing whether DeepSeek’s services fall under the EU’s Digital Services Act, which could bring further regulatory requirements.

🔗 Source: South China Morning Post

🧠 Food for thought

Implications, context, and why it matters.

Italy sets a template for clearer AI hallucination warnings before 2026 rules

DeepSeek will cut hallucinations with technical updates and share a 120-day progress report. That sets a model as AI Act transparency duties start in August 2026 1.
AGCM-backed commitments include an Italy version with Italian warnings and clearer notices about hallucinations. These go beyond AI Act transparency rules, such as chatbot disclosure 1.
The European AI Office (the EU body coordinating AI Act enforcement) has been operational since August 2025. EU member states are naming enforcement authorities. Italy’s warnings and follow-up reports could shape General-Purpose AI (GPAI) providers as more provisions start in August 2026 2.

B2B AI testing vendors see rising need for non-English hallucination checks

DeepSeek must add Italian warnings and ship technical fixes to cut hallucinations. That creates demand for tools that test accuracy across languages before August 2026 high-risk AI system obligations 1.
Regulated enterprises may want monitoring that tracks hallucinations after deployment and creates audit trails for regulators. Vendors could mirror DeepSeek’s 120-day reporting cadence 3.
Investors can watch for startups that build automated compliance user experience (UX) layers. These layers generate country specific disclosure widgets and hallucination warnings, which reduce engineering load for General-Purpose AI (GPAI) providers serving multiple EU markets under the EU staggered 2025 to 2027 timeline 4.