EU Stands Firm on AI Act Timeline Despite Industry Pushback

EU says it will continue rolling out AI legislation on schedule | TechCrunch

The European Union on Friday said it will stick to its timeline for implementing its landmark AI legislation, in response to a concerted effort by over a hundred tech companies to delay the bloc's AI rules, Reuters reported. Tech companies from across the world, including giants like Alphabet, Meta, Mistral AI and ASML have been urging the European Commission to delay rolling out the AI Act, saying it will hurt Europe's chances to compete in the fast-evolving AI arena. "I've seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI Act. Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause," the report cited European Commission spokesperson Thomas Regnier as saying. A risk-based regulation for applications of artificial intelligence, the AI Act bans a handful of "unacceptable risk" use cases outright, such as cognitive behavioral manipulation or social scoring. It also defines a set of "high-risk" uses, such as biometrics and facial recognition, or AI used in domains like education and employment. App developers will need to register their systems and meet risk and quality management obligations to gain access to the EU market. Another category of AI apps, such as chatbots, are considered "limited risk" and subject to lighter transparency obligations. The EU started rolling out the AI Act last year in a staggered fashion, with the full rules coming into force by mid-2026.

EU businesses push for freedom from AI rules and competition

Mistral fears continental companies may not get time to escape 'distant, behemoth corporations' French AI business Mistral on Thursday announced an initiative called "AI for Citizens," which it says offers a way to work with governments and public institutions to transform public services using AI. "It's clear that artificial intelligence will have significant and lasting impact not only on companies, but also on governments and societies," Mistral said. "However, in the rush to attempt to put AI to use, it all too often seems that AI is something that happens to people and countries, an inevitability beyond their influence that leaves them at the mercy of closed, opaque systems designed and operated by distant, behemoth corporations." We can't say for certain which distant, behemoth corporations Mistral means, but the list is likely to include American tech brats Amazon, Google, Meta, and Microsoft, along with OpenAI and Anthropic. AI leaves people and countries at the mercy of closed, opaque systems The French AI biz unveiled AI for Citizens - which again is focused not on citizens but on "States and public institutions" - a day after joining a group of around 50 European companies and organizations seeking a delay in the implementation of the EU's AI Act. The Act aims "to make sure that AI systems used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly." Some of its provisions came into force as of August 1, 2024, but most don't apply until August 2, 2026. The Act applies regulations matched to risk levels and therefore bans real-time facial recognition in public places as that's felt to be an unacceptably risk practice. It also imposes data governance and risk management requirements on high risk systems, but demands lesser transparency requirements for less risky AI systems. When the AI Act was unveiled, World Economic Forum contributor Dionys Gragousian, director of AI Governance & Sustainability at startup DataRobot, suggested the AI Act "actually has teeth" due to the size of potential fines it allows. In time, those teeth became less apparent as regulators adjusted the law after industry lobbying. The latest call to defang the regulatory regime comes in the form of an open letter from the EU AI Champions Initiative, a coalition of more than 60 organizations that launched in February 2025. The group presently claims to represent over 110 organizations with a total market capitalization of more than $3 trillion that together account for over 3.7 million jobs across Europe. Around 50 of these Champions - Mistral, Airbus, ASML, Publicis, and Siemens Energy, among others - on Wednesday published a note urging EU leaders to delay the enforcement of the AI Act by two years for the sake of European competitiveness. "This postponement, coupled with a commitment to prioritize regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda," the letter states. "In the context of the broader review of EU digital rules you have announced, it would also create the room needed to develop an innovation-friendly implementation strategy and identify pragmatic avenues for regulatory simplification, covering both GPAI [general purpose AI] models and high-risk AI systems as well as broader digital regulations." Advocacy group Corporate Observatory Europe panned the EU AI Champions bid for halting enforcement of the AI Act. "Delay. Pause. Deregulate. That is Big Tech's lobby playbook to fatally weaken rules that should protect us from biased and unfair AI systems," said Bram Vranken, Corporate Europe Observatory researcher and campaigner, in a statement. "These risks are far from hypothetical. From Israeli mass surveillance and killings of Palestinians in Gaza, the dissemination of disinformation during elections, including by far-right groups and foreign governments, to the widespread use of biased and faulty AI systems in welfare programs, AI is already being used in countless risky and problematic ways." American companies have also tried to convince US lawmakers not to regulate AI, by seeking a ten-year moratorium on state AI regulation. But the US Senate didn't cooperate. Now it's Europe's turn to balance economic ambition against civil society concerns about AI. ®

Explainer: Will the EU delay enforcing its AI Act?

STOCKHOLM, July 3 (Reuters) - With less than a month to go before parts of the European Union's AI Act come into force, companies are calling for a pause in the provisions and getting support from some politicians. Groups representing big U.S. tech companies such as Google owner Alphabet (GOOGL.O), opens new tab and Facebook owner Meta (META.O), opens new tab, and European companies such as Mistral and ASML (ASML.AS), opens new tabhave urged, opens new tab the European Commission to delay the AI Act by years. WHAT IS THE AUGUST 2 DEADLINE? Under the landmark act that was passed a year earlier after intense debate between EU countries, its provisions would come into effect in a staggered manner, opens new tab over several years. Some important provisions, including rules for general purpose AI (GPAI) models, are due to apply on August 2. GPAI, which includes foundation models like those made by Google, Mistral and OpenAI, will be subject to transparency requirements such as drawing up technical documentation, complying with EU copyright law and providing detailed summaries about the content used for algorithm training. The companies will also need to test for bias, toxicity, and robustness before launching. AI models classed as posing a systemic risk and high-impact GPAI will have to conduct model evaluations, assess and mitigate risks, conduct adversarial testing, report to the European Commission on serious incidents and provide information on their energy efficiency. WHY DO COMPANIES WANT A PAUSE? For AI companies, the enforcement of the act means additional costs for compliance. And for ones that make AI models, the requirements are tougher. But companies are also unsure how to comply with the rules as there are no guidelines yet. The AI Code of Practice, a guidance document to help AI developers to comply with the act, missed its publication date, opens new tab of May 2. "To address the uncertainty this situation is creating, we urge the Commission to propose a two-year 'clock-stop' on the AI Act before key obligations enter into force," said an open letter, opens new tab published on Thursday by a group of 45 European companies. It also called for simplification of the new rules. Another concern is that the act may stifle innovation, particularly in Europe where companies have smaller compliance teams than their U.S. counterparts. WILL IT BE POSTPONED? The European Commission has not yet commented on whether it will postpone the enforcement of the new rules in August. However, EU tech chief Henna Virkkunen promised on Wednesday to publish the AI Code of Practice before next month. Some political leaders, such as Swedish Prime Minister Ulf Kristersson, have also called, opens new tab the AI rules "confusing" and asked the EU to pause the act. "A bold 'stop-the-clock' intervention is urgently needed to give AI developers and deployers legal certainty, as long as necessary standards remain unavailable or delayed," tech lobbying group CCIA Europe said. The European Commission did not respond immediatelyt to requests for comment. Reporting by Supantha Mukherjee in Stockholm and Foo Yun Chee in Brussels. Editing by Mark Potter Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Supantha Mukherjee Thomson Reuters Supantha leads the European Technology and Telecoms coverage, with a special focus on emerging technologies such as AI and 5G. He has been a journalist for about 18 years. He joined Reuters in 2006 and has covered a variety of beats ranging from financial sector to technology. He is based in Stockholm, Sweden.

EU sticks with timeline for AI rules

BRUSSELS, July 4 (Reuters) - The European Union's landmark rules on artificial intelligence will be rolled out according to the legal timeline in the legislation, the European Commission said on Friday, dismissing calls from some companies and countries for a pause. Google owner Alphabet (GOOGL.O), opens new tab, Facebook owner Meta (META.O), opens new tab and other U.S. companies as well as European businesses such as Mistral and ASML (ASML.AS), opens new tab have in recent days urged the Commission to delay the AI Act by years. "I've seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI Act. Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause," Commission spokesperson Thomas Regnier told a press conference. "We have legal deadlines established in a legal text. The provisions kicked in February, general purpose AI model obligations will begin in August, and next year, we have the obligations for high risk models that will kick in in August 2026," he said. The Commission plans to propose steps to simplify its digital rules towards the end of the year, such as cutting back on reporting obligations for small companies. Some companies have voiced concerns about the compliance costs and tough requirements of the AI rules, which aim to set guardrails on a technology key to multiple sectors of the economy and currently led by the United States and China. Reporting by Foo Yun Chee Editing by Mark Potter Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:EuropeRegulatory Oversight Foo Yun Chee Thomson Reuters An agenda-setting and market-moving journalist, Foo Yun Chee is a 21-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their next move. Her knowledge and experience of European antitrust laws and developments helped her break stories on Microsoft, Google, Amazon, Meta and Apple, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as on Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

European companies urge EU to delay AI rules

Dozens of Europe's biggest companies urged the EU to hit the pause button on its landmark AI rules on Thursday, warning that going too fast could harm the bloc's ability to lead in the global AI race. The European Union's sweeping rules on artificial intelligence entered into force last year but the bloc has since pivoted to strengthening its industries in the face of fierce competition from China and the United States. The new US administration under President Donald Trump has also taken aim at the rules. Vice President JD Vance in February lambasted the EU over "excessive" regulation. Now, 46 top executives including from France's Airbus and Mistral, Dutch tech giant ASML and Germany's Lufthansa and Mercedes-Benz are calling on Brussels to reassess the rules. They accused the EU's complex regulation of putting "Europe's AI ambitions at risk, as it jeopardizes not only the development of European champions, but also the ability of all industries to deploy AI at the scale required by global competition". The CEOs urged the European Commission to propose a two-year pause and for "further simplification of the new rules" for which a code of practice has yet to be released. The pause, the CEOs said, should apply to obligations on general-purpose AI models -- like OpenAI's ChatGPT -- and high-risk AI systems that were due to take effect in August 2025 and August 2026 respectively. The EU's law takes a risk-based approach to the technology. The higher the risk to Europeans' rights or health, for example, the greater the systems' obligations to protect individuals from harm. The EU has been working on the long-delayed code to provide guidance on how the rules should apply to general-purpose AI models, including Google's Gemini and Mistral's Le Chat. There are expectations that the code will be watered down and the commission has said it will be published before the rules on GPAI models kick in next month. AFP has a deal with Mistral allowing its chatbot to draw on the agency's articles to formulate responses.

Europe's top CEOs call for Commission to slow down on AI Act

The call adds to ongoing concerns about the short timeframe in which companies will have to comply with a set of voluntary rules on general-purpose AI. CEOs from more than 40 European companies including ASML, Philips, Siemens and Mistral, are asking for a "two-year clock-stop" on the AI Act before key obligations enter into force this August. In a letter to European Commission President Ursula von der Leyen, made public on Thursday, they say this would allow "both for reasonable implementation by companies, and for further simplification of the new rules." The AI Act - rules that regulate artificial intelligence systems according to the risk they pose to society - entered into force in August 2024, but will fully apply in 2027. The companies call for a pause on obligations on high-risk AI systems, due to take effect as of August 2026, and to obligations for general-purpose AI models (GPAI), due to enter into force as of August 2025. "This postponement, coupled with a commitment to prioritise regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda," the letter says. The call comes as the Code of Practice on GPAI, a voluntary set of rules aiming to help providers of AI models, such as ChatGPT and Gemini, comply with the EU's AI Act, is yet to be released. The rules enter into force on 2 August, and the Commission has said it will publish the guidelines before that date. However, Euronews reported earlier this week that several companies including Google have been asking for a grace period to be able to comply with the code. Thomas Regnier, the Commission spokesperson on digital, told Euronews that what is being discussed in the context of the AI Board is "the timing to implement the Code of Practice, with the end of 2025 being considered." "This would be well ahead of the AI Act's enforcement deadlines - 2026 for new models and 2027 for existing models," he added. The process has been criticised since Commission-appointed experts started drafting the rules in September 2024. Tech giants as well as publishers and rights-holders are concerned that the rules violate the EU's Copyright laws, and restrict innovation.

Europe's biggest companies call for two-year pause on EU's landmark AI Act - SiliconANGLE

Europe's biggest companies call for two-year pause on EU's landmark AI Act A coalition of Europe's biggest enterprises, including Airbus SE, Mercedes-Benz AG and BNP Paribas Group is asking the European Union to freeze the implementation of a new artificial intelligence law, saying it could prevent the bloc from keeping up with the pace of development in China and the United States. The chief executive officers of 44 companies, which include Europe's top AI developer Mistral AI, have asked European Commission President Ursula von der Leyen to delay the AI Act for two years. They say its unclear, overlapping rules will discourage European investment in AI and slow down innovation, the Financial Times reported. In an open letter to EU officials, the company heads argue that the act will put Europe's AI ambitions at risk, because it "jeopardizes" the development of European champions and hampers their ability to deploy the technology at the scale needed to compete globally. Among the business leaders who added their signatures to the letter are the CEOs of the French retailer Carrefour Group S.A., the Dutch electronics firm Koninklijke Philips N.V. and chipmaking equipment manufacturer ASML Holdings N.V. The companies have strong support in their efforts to pause the rollout of the legislation, with the U.S. government, big technology firms and European business groups all putting pressure on the EU in recent weeks. On Wednesday, Brussels hosted representatives from a number of U.S. tech companies that came to participate in the creation of a revised, software version of the AI Act. Those discussions focused on a "code of practice" within the Act that's designed to help guide companies on compliance when deploying large language models such as OpenAI's GPT-4 and Meta Platforms Inc.'s Llama. The code was originally set to be published in May, but has since been delayed and is expected to be watered-down. On Monday, the EU's technology commissioner Henna Virkkunen promised that the guidance would be published before the AI Act formally comes into effect, in August. "We will publish the code of practice before that to support our industry and SMEs to comply with our AI Act," she stated. It's thought that EU Commission officials and member states have been holding intense negotiations behind closed doors in order to try and temper some of the new guidelines and simplify the Act's staggered rollout timeline. While the AI Act officially came into law in August 2024, a number of the most important measures within it will only take effect later this year, or beyond. That has resulted in a lot of confusion among European businesses, the Financial Times reported. "It's a classic example of regulation that doesn't take into account the most important thing for industry, which is certainty," said Cooley LLP co-chair Patrick Van Eecke. The letter was sponsored by an initiative called the European AI Champions, which is a coalition of 110 companies spread across multiple industries. The group is calling for a two-year pause on the AI Act's rollout, arguing that to do so would "send a strong signal that Europe is serious about its simplification and competitiveness agenda." They're joined by the founders of and investors in numerous European startups that have voiced similar concerns over the AI Act. Earlier this week, the heads of more than 30 startups signed a letter that said the legislation is a "rushed ticking time bomb", adding that they believe its unclear rules on the use of general-purpose models could result in a patchwork of national regulations. They fear this would give better-funded U.S. companies a significant competitive advantage, and damage Europe's own nascent AI industry. Many European business chiefs fear that using LLMs could leave them at the mercy of the same regulations that govern the biggest technology firms, and are especially worried about being held liable for copyright infringements. The lack of clarity on how EU member states will apply the new rules may deter the adoption of AI tools, the CEOs say, putting them at a disadvantage against their competitors in Asia and the U.S. For its part, the EU Commission insists that it's "fully committed to the main goals of the AI Act", which calls for the establishment of harmonized, risk-based rules across the EU.

Code of practice to help companies with AI rules may come end 2025, EU says - The Economic Times

"On the AI Act's GPAI rules, the European AI Board is discussing the timing to implement the Code of Practice, with the end of 2025 being considered," a Commission spokesperson said.Key guidance to help thousands of companies comply with the European Union's landmark artificial intelligence rules may come at the end of the year, the European Commission said on Thursday, marking a six-month delay. "On the AI Act's GPAI rules, the European AI Board is discussing the timing to implement the Code of Practice, with the end of 2025 being considered," a Commission spokesperson said. GPAI refers to large language models such as OpenAI's ChatGPT and similar models launched by Google and Mistral. The Commission had originally set May 2 as the deadline for the introduction of the Code of Practice.

Artificial intelligence rules to go ahead, no pause, EU Commission says - The Economic Times

The European Commission confirms that the Artificial Intelligence Act will proceed as scheduled. There will be no delays or grace periods. Obligations for general-purpose AI models start in August. High-risk model obligations will commence in August 2026. This decision follows pressure from companies and EU countries for a temporary suspension.The European Union's landmark rules on artificial intelligence will be implemented according to the timeline agreed by legislators and EU countries, the European Commission said on Friday, dismissing suggestions and pressure from some companies and several EU countries for a temporary pause. "I've seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI act. Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause," Commission spokesperson Thomas Regnier told a press conference. "We have legal deadlines established in a legal text. The provisions kicked in February, general purpose AI model obligations will begin in August, and next year, we have the obligations for high risk models that will kick in in August, 2026," he said.

European Commission Says It Won't Delay Implementation of AI Act | PYMNTS.com

The AI Act's rules will be implemented according to the schedule included in the legislation, Reuters reported Friday, citing comments at a press conference by Commission spokesperson Thomas Regnier. "I've seen, indeed, a lot of reporting, a lot of letters and a lot of things being said on the AI Act," Regnier said, according to the report. "Let me be as clear as possible, there is no stop the clock. There is no grace period. There is no pause." The Commission will adhere to the deadlines in the AI Act, including the August 2025 implementation of obligations for general-purpose AI models and the August 2026 launch of obligations for high-risk models, Regnier said, per the report. Some tech companies had urged the Commission to delay the implementation of the AI Act by years, saying they are concerned about its compliance cost and complexity, according to the report. In a Friday post on LinkedIn that included a video with some of these remarks, Regnier also wrote that the Commission takes AI companies' concerns "extremely seriously." Regnier added that the commission will address some of these concerns by preparing a Digital Simplification Omnibus package; discussing the timing for the implementation of a Code of Practice, with the end of the year being considered; and setting up an AI Act Serve Desk that will help companies and offer them clear guidance. He also said in the post that the Commission wants to "provide everything our industry needs to make Europe a leader in AI: infrastructure, data, computing power, talent and, of course, clarity and legal certainty." It was reported Thursday (July 3) that some tech companies had cited the Commission's delay in the publication of its Code of Practice as a reason why the implementation of the AI Act should be delayed. The General-Purpose AI Code of Practice, which is meant to help companies comply with the AI Act, was originally scheduled to be released in May but may now be delayed until the end of the year. The AI Act came into force on Aug. 1, 2024, establishing the world's first comprehensive regulatory framework for AI and setting new compliance standards for businesses worldwide, PYMNTS reported at the time.

European Commission Delays Release of AI Act's Code of Practice | PYMNTS.com

Originally scheduled for May 2, the release of the General-Purpose AI Code of Practice (GPAI) may be delayed until the end of the year, Reuters reported Thursday (July 3). "On the AI Act's GPAI rules, the European AI Board is discussing the timing to implement the Code of Practice, with the end of 2025 being considered," a commission spokesperson told Reuters. A European Commission web page dedicated to the GPAI said the date of the implementation of the Code of Practice has yet to be confirmed. The page said the code will detail the AI Act rules for providers of general-purpose AI models. The rules are meant to ensure that AI is safe and trustworthy, and they cover topics such as transparency and copyrights, the page said. "The AI Office is facilitating the drawing-up of a Code of Practice to detail out these rules," the page said. "The code should represent a central tool for providers to demonstrate compliance with the AI Act, incorporating state-of-the-art practices." When the EU AI Act came into force on Aug. 1, 2024, it established the world's first comprehensive regulatory framework for AI and set new compliance standards for businesses worldwide, PYMNTS reported at the time. The law classifies various types of AI based on risk and imposes different requirements and obligations on "limited risk" and "high risk" AI systems. Rules for general-purpose AI models are set to take effect in August 2025, while most other rules of the AI Act are scheduled to begin to apply in August 2026. According to Thursday's Reuters report, some tech companies have called for a delay in the implementation of the AI Act, in part because the Code of Practice has not been issued. The commission spokesperson said, per the report: "Our commitment to the goals of the AI Act, such as establishing harmonized risk-based rules across the EU and ensuring the safety of AI systems in the European market, remains unchanged."

Airbus, ASML, Mistral Bosses Ask EU to Pause AI Rules

Chief executives from top European companies including Mistral and Airbus have asked the European Commission to delay fully wielding its landmark artificial intelligence act. In a letter sent to commission president Ursula von der Leyen, executive vice presidents Stephane Sejourne and Henna Virkkunen and economy commissioner Valdis Dombrovskis, executives asked officials to hold off on enforcing its new AI rulebook--which is due to come into force next month--for two years. The AI Act entered into force last year but certain obligations for companies will become fully enforceable over the coming years. Some rules around governance and obligations for general-purpose AI models are due to come in next month. The letter said the EU's ability to become a leader in nascent AI is being disrupted by overlapping and complicated regulations in the bloc. "This puts Europe's AI ambitions at risk, as it jeopardises not only the development of European champions, but also the ability of all industries to deploy AI at the scale required by global competition," it said. It asked Brussels' top brass for a two-year "clock-stop" on key obligations in the act, and to postpone enforcement until practical standards and guidance are in place. "This postponement, coupled with a commitment to prioritise regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda," the letter, which was also signed by ASML's Christophe Fouquet and Mercedez-Benz chief Ola Kaellenius, said. The EU has faced calls in recent weeks to reconsider its AI rulebook, seeking clarity on a code of practice for AI models like OpenAI's ChatGPT. This was due to come out last May but has been delayed. The commission said experts are now discussing when to implement the code of practice and considering doing so toward the end of this year. "We will provide everything our [member states] and industry need to make the EU a true AI continent: infrastructure, data, computing power, talent and, of course, clarity and legal certainty," spokesperson Thomas Regnier said. More broadly, the commission is under mounting pressure to streamline and water down a stack of EU laws governing everything from carbon emissions reporting to data protection as policymakers grapple with European industry's ability to compete with counterparts in the U.S. and China.

AI Act: an ambitious law with an uncertain implementation

The world's first legislative framework for artificial intelligence, which was welcomed when it was adopted, is now reaching a crucial stage in its implementation. However, the EU is dithering over how to implement it. The changing political context and pressure from the tech industry are clouding the timetable. The EU has a unique opportunity to assert its vision of ambitious digital regulation. The AI Act, which came into force last August, will only gradually take full effect. The text classifies AI systems into four levels of risk. The most risky ones have been banned since February. The next step, scheduled for August 2, concerns general-purpose AI models and is the subject of debate. Some major provisions, which were supposed to come into force at the beginning of August, still lack clear guidelines. The code of conduct planned for May has not yet been defined. This vacuum is particularly worrying for European SMEs, which are exposed to potentially disparate rules of application depending on the Member State. It will be independent national bodies that will be responsible for interpreting and enforcing the law locally. This is a double disadvantage for small businesses. On the one hand, they risk getting lost in a fragmented framework. On the other hand, they do not have the legal resources of the digital giants. "I don't think this regulation will affect Google, Amazon, Apple or Meta. They have an army of lawyers," MEP Aura Salla, a former lobbyist at Meta, told the Financial Times. Kilian Gross, head of the Commission's AI policy unit, insists that no far-reaching reform is planned. The aim, he says, is to simplify implementation. But Vice-President Henna Virkkunen, speaking at a meeting in Luxembourg, did not rule out a partial delay if the standards and guidelines are not ready in time. A parliamentary think tank is currently working on a possible extension of the timetable. Amongst the issues to be decided: The Commission invites all stakeholders -- businesses, administrations, researchers, civil society -- to share their views. Against a backdrop of transatlantic tensions, Ursula von der Leyen sees AI as a lever to restore Europe's economic strength. But internal divisions are hampering the development of a coherent framework: some argue for a flexible approach, others for strict regulation. It is in this climate of uncertainty that 45 European companies -- including ASML, Philips, Mistral AI, and Siemens Energy -- have called for a two-year moratorium in a letter to the Commission. Their aim is to avoid slowing down innovation and reassure investors. The same view is shared by CCIA Europe, a powerful lobbying group that includes Alphabet, Apple, and Meta. According to the group, hasty implementation "would jeopardize Europe's AI ambitions." These groups want the Commission to apply the "omnibus simplification package" to the AI sector. In line with the Competitiveness Compass, these measures aim to bring together proposals for simplifying several regulations. The delay in the code of conduct can also be explained by active lobbying by the US. Donald Trump said in January at the World Economic Forum that European technology regulation was "a form of taxation." Despite this, Kilian Gross promises that the AI Office will publish the code before August, even though the May deadline was not met. It is amid these tensions that the future of the AI Act will be decided. How Europe resolves issues of timing and implementation will say a lot about its technological ambition. This regulatory framework could become a lever for trust and digital sovereignty... or a factor in falling behind competing powers. At this stage, a delay seems increasingly likely, given the technical uncertainties, political differences, and economic pressures.

Code of practice to help firms comply with AI rules may apply end 2025, EU says

BRUSSELS (Reuters) -A code of practice designed to help thousands of companies comply with the European Union's landmark artificial intelligence rules may only apply at the end of 2025, the European Commission said on Thursday. Alphabet's Google, Meta Platforms, European companies such as Mistral and ASML as well as several EU governments have called for a delay in implementing the Artificial Intelligence Act, partly due to the lack of a code of practice. Publication of the Code of Practice for large language models (GPAI), such as OpenAI's ChatGPT and similar models launched by Google and Mistral, had originally been planned for May 2. The Commission plans to present the code in the coming days and expects companies to sign up next month and the guidance likely to kick in at the end of the year, a Commission spokesperson said. "On the AI Act's GPAI rules, the European AI Board is discussing the timing to implement the Code of Practice, with the end of 2025 being considered," he said. Signing up to the code is voluntary, but companies who decline to do so, as some Big Tech firms have indicated, will not benefit from the legal certainty provided to a signatory. AI advocacy group The Future Society said the Code would be a key part of the AI rule book. The Code of Practice makes clear what level of quality downstream users or business customers can expect, making it harder for U.S. companies to mislead users into adopting unreliable products, its executive director Nick Moës said. He said the code requires legally mandated authorities and experts to assess the quality of these general-purpose AI services. The Commission pushed back against calls for a delay in rolling out the AI rules. "Our commitment to the goals of the AI Act, such as establishing harmonised risk-based rules across the EU and ensuring the safety of AI systems in the European market, remains unchanged," the spokesperson said. Campaign group Corporate Europe Observatory decried Big Tech's role. "Delay. Pause. Deregulate. That is Big Tech's lobby playbook to fatally weaken rules that should protect us from biased and unfair AI systems," said Bram Vranken, Corporate Europe Observatory researcher and campaigner. The AI rules for GPAI models will become legally binding on August 2 but only enforced a year later for new models placed on the market starting from next month. Existing models will have two years to August 2, 2027 to comply with the rules. (Reporting by Foo Yun Chee; Editing by Hugh Lawson, Marguerita Choy and Jane Merriman)