EU strikes deal to delay and soften AI Act rules amid pressure from businesses

EU waters down AI rules after industry pressure, delays enforcement

EU countries and European Parliament lawmakers agreed Thursday to delay and weaken key provisions of the bloc's artificial intelligence regulations after nine hours of negotiations. The tentative agreement still requires formal approval from EU governments and the Parliament in coming months.

The changes push enforcement of rules governing high-risk AI systems-those involving biometrics, critical infrastructure, and law enforcement-to December 2, 2027, from an August 2, 2026 deadline. The agreement also excludes machinery from the AI Act entirely, deferring to existing sectoral regulations.

Marilena Raouna, Cyprus's deputy minister for European affairs, said the agreement "significantly supports our companies by reducing recurring administrative costs." Cyprus holds the rotating EU Council presidency.

The revisions follow sustained complaints from businesses about overlapping regulations and administrative burden that they say hinder competition with U.S. and Asian companies. The European Commission initiated the simplification drive to address these concerns.

What stays in place

The AI Act, which entered force in August 2024, remains the world's strictest AI regulation despite the changes. Two provisions take effect December 2: a ban on AI-generated non-consensual intimate images and mandatory watermarking of AI-generated content.

The ban on deepfakes and sexually explicit AI images responds to content generated by xAI's Grok chatbot on X. Dutch lawmaker Kim van Sparrentak said the measure protects vulnerable groups: "By the end of this year everyone, but especially women and girls will be safe from horrific nudifier apps being widely available on the EU market."

For government professionals overseeing AI for Government initiatives, understanding these regulatory timelines matters for procurement and deployment planning. Those working with Generative AI and LLM systems should track the December deadline for watermarking requirements.