EU considers postponing implementation of AI law under pressure from US and Big Tech

Table of Contents

The European Union is considering suspending parts of its landmark artificial intelligence law in response to pressure from the US government and Big Tech companies.

The European Commission plans to relax parts of the digital rulebook, including the AI law that came into force last year, as part of a “simplification package” due to be decided on November 19, the Financial Times reported on Friday.

If approved, the proposed suspension would give generative AI providers currently operating in the market a one-year compliance grace period and potentially postpone enforcement of fines for violations of the AI Transparency Rule until August 2027.

“The possibility of delaying the implementation of the targeted parts of the AI Act is still under consideration,” Thomas Renier from the commission told Cointelegraph, adding that the EC is working on a digital omnibus to be submitted on November 19th.

EU AI law will come into force in August 2024

The Commission proposed the first EU AI law in April 2021, with a mandate to establish a risk-based AI classification system.

The European AI Law will be passed by the European Parliament and the Council in 2023 and will come into force in August 2024, with provisions to be implemented gradually over the next 6 to 36 months.

Extract from the implementation schedule of the EU AI law. Source: ArtificialIntelligenceAct.eu

According to the FT, most of the rules regarding high-risk AI systems that can pose a “significant risk” to health, safety and people’s fundamental rights will come into force in August 2026.

Draft ‘simplification’ proposals could reportedly give companies that breach the rules around the most risky AI use a one-year ‘grace period’.

Related: EU considers SEC-like oversight of stock and crypto exchanges to strengthen startup environment

The proposal is still subject to informal discussions within the Commission and with EU member states and could be subject to changes ahead of its adoption on November 19, the report said.

“Various options are being considered, but no formal decision has been taken at this stage,” EC’s Rainier told Cointelegraph, adding that “the Commission remains fully supportive of the AI Act and its objectives at all times.”

The EU’s potential suspension of parts of its AI laws highlights Brussels’ evolving approach to digital regulation as global competition from the US and China intensifies.

The European Central Bank accelerated its digital euro efforts after the US explicitly banned the development of central bank digital currencies (CBDCs) in early 2025, but then said digital cash would not be introduced until 2029.

magazine: Glocipedia: A “far-right talking point” or the long-awaited antidote to Wikipedia?