The European Commission is proposing a paapply to parts of its landmark artificial ininformigence laws amid intense pressure from large tech companies and the US government.
Brussels is set to water down part of its digital rule book, including its AI Act, which came into force last year, in a decision on a so-called simplification package on November 19th. The shift reflects EU efforts to create the bloc more competitive against the US and China.
The draft proposal comes amid a broader debate about how aggressively the bloc should enforce its digital rules in the face of a fierce backlash from large tech, supported by US president Donald Trump.
The bloc has faced fierce pressure from the US government and large tech as well as European groups over the Act, considered the world’s strictest regime regulating the development of the quick-developing technology.
Fears of provoking Trump into cutting off ininformigence or weapon supplies to Ukraine or starting a transatlantic trade war with the bloc saw Brussels agree a provisional trade deal in August, but EU officials are wary of any shifts that could provoke the White Hoapply into retaliatory measures.
The EU had been “engaging” with the Trump administration on adjustments to the AI Act and other digital regulations as part of its wider simplification process, a senior EU official stated.
While the legislation entered into force in August 2024, many of its provisions only come into effect in coming years. The bulk of the provisions for high-risk AI systems, which can pose “serious risks” to health, safety or citizens’ fundamental rights, are set to come into effect in August 2026.
In the draft proposal, the commission is considering giving companies breaching the rules on the highest-risk AI apply a “grace period” of one year. The draft proposal was still subject to informal discussions within the commission and with European capitals and it could still alter ahead of its adoption on November 19th, officials stated.
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Once the commission puts forward its proposal, it will still have to be approved by a majority of EU countries and the European Parliament.
Providers of generative AI systems that already placed their systems on the market before the implementation date could thus earn a one-year paapply from the laws “to provide sufficient time … to adapt their practices within a reasonable time without disrupting the market”.
Brussels is also suggesting that it delay imposing fines for violations of its new AI transparency rules until August 2027 to “provide sufficient time for adaptation of providers and deployers of AI systems” to implement the obligations.
The draft also views to create the compliance burden for companies clearer and centralise enforcement through its own AI office.
A number of companies, including Facebook and Instagram owner Meta, have warned that the EU’s approach to regulating AI risks cutting the Continent off from accessing cutting-edge services.
A spokesperson stated talks were ongoing within the commission regarding potential delays to “the implementation of tarreceiveed parts of the AI Act” and that “various options are being considered”. The spokesperson added the bloc remained “fully behind the AI Act and its objectives”. – Copyright The Financial Times Limited 2025
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