EU Considers Delaying AI Act Implementation Amid Pressure from Trump Administration and Big Tech

EU weighs pausing parts of landmark AI act in face of US and Big Tech pressure

The European Commission is proposing a pause to parts of its landmark artificial intelligence laws amid intense pressure from Big Tech companies and the US government. Brussels is set to water down part of its digital rule book, including its AI act that entered into force last year, in a decision on a so-called simplification package on November 19. The move reflects EU efforts to make the bloc more competitive against the US and China. The draft proposal comes amid a broader debate over how aggressively the bloc should enforce its digital rules in the face of a fierce backlash from Big Tech companies supported by US President Donald Trump. The bloc has faced fierce pressure from the US government and Big Tech as well as European groups over its AI act, considered the world's strictest regime regulating the development of the fast-developing technology. Fears of provoking Trump into cutting off intelligence 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 moves that could provoke the White House 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 told the Financial Times. While the legislation entered into force in August 2024, many of its provisions only come into effect in upcoming 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, seen by the FT, the commission is considering giving companies breaching the rules on the highest-risk AI use a "grace period" of one year. The draft proposal was still subject to informal discussions within the commission and with European capitals and could still change ahead of its adoption on November 19, officials said. 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 pause 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 looks to make the compliance burden for companies easier 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 said talks were still ongoing within the commission regarding potential delays to "the implementation of targeted 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".

European Commission mulls AI Act delays in face of Trump and business pressure

Spokesperson says 'reflection is still ongoing' over whether to push back 'targeted parts' of landmark legislation The European Commission is considering plans to delay parts of the EU's landmark Artificial Intelligence Act, after intense pressure from businesses and Donald Trump's administration. The commission confirmed that "a reflection is still ongoing" on delaying aspects of the act, after media reports that it was weighing changes to the law with the aim of easing demands on companies. The EU's act, the first comprehensive legislation in the world regulating artificial intelligence, came into force in 2024, but many of its provisions do not yet apply. Most obligations on companies developing high-risk AI systems that "pose serious risks to health, safety or fundamental rights" are not due to come into effect until August 2026 or 2027. According to the Financial Times, the commission is considering giving a one-year "grace period" to companies breaching the rules on the highest-risk AI. Providers of generative AI - systems that can produce content, such as text or images - who have already placed products on the market before the implementation date could be granted a one-year pause from the laws "to provide sufficient time   ... to adapt their practices within a reasonable time without disrupting the market", stated an internal document cited by the FT. The commission is also considering delays to 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 paper reported. Also being studied is greater flexibility for AI developers of high-risk systems over monitoring performance of products on the market, by allowing them to follow guidance that would be less prescriptive than the system originally envisaged, according to MLex, which first reported on the planned amendments to the act. The proposals could change before their expected release on 19 November. Once published, they would then have to be agreed by EU member states and the European parliament. The EU has come under repeated pressure from the Trump administration to weaken regulation of tech companies. The US president recently threatened to impose tariffs on countries with tech regulations or digital taxes that he deemed to be "designed to harm or discriminate against American technology". Earlier this year Meta announced it would not be signing the commission's code of practice for general-purpose AI models. "Europe is heading down the wrong path on AI," wrote the company's chief global affairs officer, Joel Kaplan, who contended that the code introduced "legal uncertainties" for model developers, as well as measures that went "far beyond the scope of the AI Act". But it is not just US companies that have complained about Europe's regulation of the fast-evolving technology. Dozens of European companies have urged a two-year pause on the act to allow time for "reasonable implementation" and "further simplification of the new rules". An open letter signed by the heads of 46 companies, including Airbus, Lufthansa and Mercedes-Benz, said such a delay "would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda". The European Commission spokesperson Thomas Regnier said "a reflection is still ongoing within the commission" on potential delays to implementation of "targeted parts of the AI Act". No decision had been taken, he said, and the commission would "always remain fully behind the AI Act and its objectives". The commission, he added, had "constant contacts with our partners around the globe" but it was "not for a third country to decide how we legislate. This is our sovereign right."

EU moves to weaken landmark AI Act amid pressure from Trump and U.S. tech giants, according to news report | Fortune

The European Union is considering watering down its flagship AI Act following backlash from Big Tech companies and the US government, according to a report in the Financial Times which cited a draft document outlining the proposed changes that it had seen and an interview with an unnamed senior EU official. The proposed changes are part of the European Commission's recently announced "simplification agenda" and "efforts to create a more favorable business environment" within the bloc. In September, the European Commission opened a call for evidence in an effort to collect research on how to simplify its legislation around data, cybersecurity, and artificial intelligence (AI). The unnamed senior EU official told the Financial Times that Brussels has been "engaging" with the Trump administration on potential adjustments to the AI Act and other digital regulations as part of a broader effort to simplify the legislative framework. Representatives for the European Commission told Fortune the commission "will always remain fully behind the AI Act and its objectives." "When it comes to potentially delaying the implementation of targeted parts of the AI Act, a reflection is still ongoing within the Commission," Thomas Regnier, a Commission spokesperson, said in a statement. "Various options are being considered, but no formal decision has been taken at this stage." Some of the proposed changes are set to affect the EU's landmark AI Act, one of the strictest pieces of AI regulation in the world. Passed in 2024, the act bans certain uses of AI, such as social scoring and real-time facial recognition, and imposes strict rules on the use of AI in areas deemed "high-risk" such as healthcare, policing, and employment. It applies not only to companies within the EU but also to any firm offering AI products or services to Europeans. It also imposes strict transparency requirements on global firms and punishes violations of the law with heavy fines. Under a draft proposal reviewed by the Financial Times, companies that have deployed so-called high-risk AI systems could receive a one-year "grace period" before enforcement begins. The delay would allow firms in these high-risk domains that are already deploying AI to make adjustments "without disrupting the market," according to the draft document. The proposal, which remains under internal discussion within the Commission and with EU member states, could still be amended before its expected adoption on November 19. Even once finalized, it would need approval from a majority of EU countries and the European Parliament before being put into practice. The Commission is also considering postponing the start date for penalties related to transparency violations under the new AI Act. If approved, fines for non-compliance would not take effect until August 2027, giving companies and AI developers "sufficient time" to adjust to the new obligations. The Act has been criticized by tech companies and startups, which argue that its rules are overly complex and risk stifling innovation in Europe by creating high compliance costs and bureaucratic hurdles. Global tech firms, including Meta and Alphabet, have warned that the Act's broad definitions of "high-risk" AI could discourage experimentation and make it harder for smaller developers to compete. The Trump administration has also been critical of Europe's regulatory approach to AI. At the Paris AI Summit earlier this year, U.S. Vice President J.D. Vance publicly warned that "excessive regulation" of AI in Europe could cripple the emerging industry, in a rebuke to European efforts, including the AI Act. In contrast, the Trump administration has taken a relatively light-touch approach to AI regulation, arguing instead that innovation should be prioritized amid a global AI arms race with China. Most U.S. AI regulation is being passed at the state level, with California adopting some of the strictest rules for the emerging tech.

EU considers delaying AI Act rollout amid US and Big Tech pressure

After adopting the AI Act last year, the European Union is considering easing certain provisions amid mounting pressure from the US and Big Tech. The European Union is considering a partial halt to its landmark artificial intelligence laws in response to pressure from the US government and Big Tech companies. The European Commission plans to ease part of its digital rulebook, including the AI Act that took effect last year, as part of a "simplification package" that is to be decided on Nov. 19, the Financial Times reported on Friday. If approved, the proposed halt could allow generative AI providers currently operating in the market a one-year compliance grace period and delay enforcement of fines for violations of AI transparency rules until August 2027. "When it comes to potentially delaying the implementation of targeted parts of the AI Act, a reflection is still ongoing," the commission's Thomas Regnier told Cointelegraph, adding that the EC is working on the digital omnibus to present it on Nov. 19. The commission proposed the first EU AI law in April 2021, with the mission of establishing a risk-based AI classification system. Passed by the European Parliament and the European Council in 2023, the European AI Act entered into force in August 2024, with provisions expected to be implemented gradually over the next six to 36 months. According to the FT, a 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. With the draft "simplification" proposal, companies breaching the rules on the highest-risk AI use could reportedly receive a "grace period" of one year. Related: EU mulls SEC-like oversight for stock, crypto exchanges to bolster startup landscape The proposal is still subject to informal discussions within the commission and with EU states and could still change ahead of its adoption on Nov. 19, the report noted. "Various options are being considered, but no formal decision has been taken at this stage," the EC's Regnier told Cointelegraph, adding: "The commission will always remain fully behind the AI Act and its objectives." The EU's potential suspension of parts of the AI Act underscores Brussels' evolving approach to digital regulation amid intensifying global competition from the US and China. After the US explicitly banned central bank digital currency (CBDC) development in early 2025, the European Central Bank accelerated work on the digital euro but later said that digital cash would not launch before 2029.

European Commission mulls pausing parts of AI Act

The European Commission is proposing a pause to parts of its AI laws amid intense pressure from big tech companies and the U.S. government, the Financial Times reported . The regulator is set to soften part of its digital rules, including A pause could ease compliance burdens, give companies more time to adapt, and potentially reduce immediate disruption for providers of AI systems. Delays may increase regulatory uncertainty, but might also limit penalties and allow businesses longer adaptation time, affecting competitive dynamics and market access in Europe. Softening rules and engaging with the U.S. could make the EU more competitive globally, aligning digital policy to avoid trade tensions and to attract leading tech innovation.

EU considers pausing parts of AI Act amid tech industry pressure - report By Investing.com

Investing.com -- The European Commission is considering a pause on certain portions of its artificial intelligence legislation following pressure from major technology companies and the U.S. government, according to a Financial Times report on Friday. Tech giants including Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) have been lobbying for months against aspects of the EU's AI Act. The Trump administration has also expressed concerns, warning that some measures could lead to trade tensions between the U.S. and Europe. A senior EU official told the Financial Times that European authorities have been "engaging" with the Trump administration regarding potential adjustments to the AI Act and other digital regulations. These changes are part of a broader simplification process scheduled for adoption on November 19. The proposed pause represents a significant development for the EU's regulatory approach to artificial intelligence, which has been positioned as a comprehensive framework for governing AI technologies in Europe. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

EU Floats Tweaks, New Grace Periods in AI Act

The European Union could implement new changes to its Artificial Intelligence Act in a bid to make it easier for companies to obey the law, according to a draft proposal seen by The Wall Street Journal. The package is set to be formally presented by the European Commission on Nov. 19, based on a timetable on the European Commission's website, and could still change before then. The text is part of a broader package of measures that Brussels is proposing to simplify the bloc's digital regulations. Under the planned tweaks, some groups whose generative AI systems are already on the market would be offered a grace period to help them comply with obligations on having their systems watermarked to increase transparency. The text also proposes adding clarity as to how the law fits in with the rest of the EU's digital rulebooks, including the Digital Services Act. "The Commission has committed to a clear, simple, and innovation-friendly implementation of the AI Act," the document said. The EU faces significant pressure to water down or delay the implementation of the AI Act from tech companies and lobby groups, which say the rules add red tape and stifle innovation. The law--along with several of the EU's stack of tech regulation--has also stoked tensions with Washington as U.S. officials say the rules are a burden for American tech groups. The AI Act entered into force in August 2024, but enforcement for some of its rules for different types of AI tools has been staggered. Rules on data governance, transparency, documentation and human oversight for what the EU deems high-risk AI systems are due to come into effect on Aug. 2 next year and 2027. A spokesperson for the commission--the bloc's executive arm tasked with drafting EU legislation--said that officials are still considering whether they should seek to delay implementing some parts of the AI Act to help companies comply with it. "Various options are being considered but no formal decision has been taken at this stage," commission spokesperson Thomas Regnier said. "The commission will always remain fully behind the AI Act and its objectives." A tweak in the draft proposal is offering a one-year grace period to companies that need to retroactively make their generative AI systems readable as AI-generated or manipulated, meaning authorities wouldn't be able to penalize groups for falling short of the rules until August 2027. The draft also includes delaying fines for companies that don't obey certain transparency requirements by one year to August 2027 "to provide sufficient time for adaptation of providers and deployers of AI systems" to comply with the rules. Speaking to reporters on Friday, Regnier said that EU officials have been in continuous contact with counterparts in the U.S., but that Brussels should ultimately have the sovereignty to write its own rules. "It's not for a third country to decide how we legislate," he said.

EU weighs pausing parts of landmark AI act in face of US and big tech pressure, FT reports

(Reuters) -The European Commission is proposing to pause parts of its landmark artificial intelligence (AI) legislation amid intense pressure from big tech companies and the U.S. government, the Financial Times reported on Friday. The move follows months of urging by tech giants like Meta and Alphabet , and pressure from the Trump administration, which has warned against measures that could provoke trade tensions. The EU has been "engaging" with the Trump administration on adjustments to the AI act and other digital regulations as part of a wider simplification process, which is due to be adopted on November 19, a senior EU official told the FT. Reuters could not immediately verify the report. The EU did not immediately respond to Reuters requests for comment. In July, a spokesperson for the European Commission dismissed calls from some companies and countries for a pause, saying the AI rules would be rolled out according to the legal timeline in the legislation. Talks were continuing within the commission regarding potential delays to "the implementation of targeted parts of the AI act," a spokesperson for the EU told the FT. They added that while various options were being considered, the EU remained "fully behind the AI act and its objectives." The legislation came into force in August 2024 but many of the provisions are staggered to come into effect in coming years. (Reporting by Abu Sultan in Bengaluru; Editing by Kim Coghill and Kate Mayberry)