The chapter explores the implications of EU Regulation 2024/1689 (“AI Act”) on the Italian public administration. It begins with a brief description of the digital transformation faced by public administrations, in which artificial intelligence (“AI”) is included as part of this evolutionary process. It continues with administrative court rulings and the principles they affirmed in relation to algorithmic administration and analyses how the AI Act intervened with the aim of ensuring compliance with the rule of law. The chapter then looks at the impact of AI legislation, both supranational and national, on the organisational structure of public administration and focuses on the knowledge and skills to be provided to public employees in order to interact effectively with the digital world (in general) and AI (in particular). Finally, the chapter deals with a specific sector, that of public contracts, in which the use of AI finds specific legislative discipline, and analyses some cases of use of AI applications by Italian public administrations.