Proposed Changes to Digital Rulebook
The European Union is contemplating a partial suspension of its significant artificial intelligence laws, a move influenced by pressure from the United States government and major technology companies. The European Commission is proposing to relax certain aspects of its digital regulations, including the AI Act which became effective last year. This proposed modification is part of a broader "simplification package" slated for a decision on November 19.
If this proposal is approved, it could grant generative AI providers currently active in the market a one-year grace period for compliance. Furthermore, it would delay the enforcement of penalties for violations of AI transparency rules until August 2027.
Thomas Regnier of the European Commission stated that discussions are ongoing regarding the potential delay of specific parts of the AI Act. He confirmed that the EC is working on the digital omnibus proposal to be presented on November 19.
Background of the EU AI Act
The European Commission first put forward its AI legislation in April 2021. The primary objective of this law is to establish a risk-based classification system for artificial intelligence.
The European AI Act was approved by the European Parliament and the European Council in 2023 and entered into force in August 2024. Its provisions are expected to be implemented progressively over the subsequent six to 36 months.
According to reports, the majority of the regulations pertaining to high-risk AI systems, which are those that could pose significant dangers to health, safety, or fundamental rights, are scheduled to become effective in August 2026.
Under the proposed "simplification" measures, companies that violate the rules concerning the highest-risk AI applications might be granted a one-year grace period.
This proposal is currently undergoing informal discussions within the commission and with EU member states. It could still be subject to changes before its official adoption on November 19.
Regnier reassured that various options are being evaluated, but no definitive decision has been made yet. He emphasized that the commission remains fully committed to the AI Act and its overarching objectives.
Evolving Regulatory Landscape
The European Union's consideration of delaying parts of the AI Act highlights a shifting strategy in digital regulation, particularly in the context of increasing global competition from the United States and China.
Following the United States' explicit prohibition of central bank digital currency (CBDC) development in early 2025, the European Central Bank had accelerated its work on the digital euro. However, it was later announced that digital cash would not be launched before 2029.