Draghi urges pause on EU AI Act to assess risks amid industry pressure and unclear oversight

Draghi urges pause on EU AI Act rollout to gauge risks and reduce uncertainty

Mario Draghi called for a pause in the EU AI Act's next implementation stage, arguing the rules for high-risk systems should be reassessed before they bite. The AI Act entered into force in August 2024 and will fully apply in 2027. Draghi said the framework is "a source of uncertainty" and warned that the next phase must be proportionate and supportive of innovation.

He noted early measures-the bans on "unacceptable-risk" systems and the initial codes of practice-landed without major issues. "The next stage-covering high-risk AI systems in areas like critical infrastructure and health-must be proportionate and support innovation and development. In my view, implementation of this stage should be paused until we better understand the drawbacks."

Industry wants time; civil society pushes back

More than 40 CEOs from ASML, Philips, Siemens, Mistral and others asked in July for a two-year "clock-stop" to allow reasonable implementation and simplification. Their concern: companies need time to adapt systems, documentation, and oversight to new rules.

Over 50 organisations, including Access Now, CDT Europe and BEUC, warned against delays or reopening the law. They argue that easing obligations now would weaken accountability and dilute protections grounded in fundamental rights.

GPAI guidance gaps and unclear enforcement

Providers of general-purpose AI still face open questions. Commission guidance meant to support GPAI compliance was not ready in time, and several companies-including Google-have sought a grace period for the voluntary code of practice.

In many member states, the competent authorities for enforcement remain unnamed. The Commission has yet to publish a complete list of watchdogs, leaving public bodies and vendors without a clear supervisory counterpart.

Transatlantic friction

US President Donald Trump threatened "substantial additional tariffs" on countries adopting laws that target American tech companies unless those actions are removed. The Commission responded: "It is the sovereign right of the EU and its member states to regulate economic activities on our territory, which are consistent with our democratic values."

For reference, the AI Act's legal text is available on EUR-Lex: Regulation (EU) 2024/1689.

Digital omnibus: potential relief in December

EU tech chief Henna Virkkunen said the Commission will present a "digital omnibus" package in December. The review would streamline existing tech laws and could cut reporting or transparency obligations where they overlap, including under the AI Act.

What public leaders should do now

Government teams and contractors should keep moving while planning for either outcome-pause or no pause. Focus on controls you'll need regardless of timing.

• Map all AI use cases, including GPAI, and assign preliminary risk levels.
• Stand up a governance spine: policy, risk register, human oversight, incident handling.
• Prepare technical documentation and data governance evidence that can scale to high-risk standards.
• Track which national authority will supervise you; plan one-touch reporting to avoid duplicate work.
• Bake AI clauses into procurement: transparency, logging, model updates, security, and exit terms.
• Coordinate with DPO and CISO on testing, record-keeping, and audit trails.
• Scenario-plan budgets and timelines for both a pause and on-time enforcement.

If your team needs practical upskilling on AI risk, governance, and procurement, see curated options by role: AI courses by job.

Beyond AI: cars, carbon, and the case for scale

Draghi questioned the 2035 deadline for zero tailpipe emissions. He said assumptions have shifted: EV demand has grown more slowly, European innovation has lagged, costs remain high, and supply chains are fragmented.

The result, he argued, is an aging 250 million-vehicle fleet with limited emissions progress. He called for a technology-neutral review that reflects market and tech realities, adding the automotive sector will test Europe's ability to align regulation, infrastructure, and supply chains.

On EU governance, Draghi said Europe must act less like a confederation and more like a federation in key areas. He pointed to fewer vetoes, deeper pooling of resources, and the option of enhanced cooperation to move willing coalitions forward.

He also floated common debt for common projects-funding breakthrough innovation, scale technologies, defence R&D, and energy grids-where fragmented national spending falls short. Bruegel's Simone Tagliapietra put it bluntly: either Europe changes its economic model, or it will perish; the answer is more action at the EU level.

Key dates to watch

• December 2025: Commission's digital omnibus proposal.
• 2025-2026: Expected designation of national AI authorities and further guidance for GPAI.
• 2027: AI Act becomes fully applicable (unless legislators adjust the calendar).
• Upcoming: Review of CO₂ standards for cars and vans.