EU considers delaying AI Act rollout amid US and Big Tech pressure
News Summary
The European Commission is considering a partial halt to its landmark artificial intelligence laws in response to pressure from the U.S. government and Big Tech companies. The Commission plans to ease parts of its digital rulebook, including the AI Act that took effect last year, as part of a “simplification package” to be decided on November 19. 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. The EU’s AI Act entered into force in August 2024, aiming to establish a risk-based AI classification system, with most provisions for high-risk AI systems originally set to come into effect in August 2026. The Commission states that a “reflection is still ongoing” regarding delaying parts of the AI Act’s implementation but will “always remain fully behind the AI Act and its objectives.”
Background
The EU first proposed its AI Act in April 2021, aiming to establish a risk-based AI classification system, and it was passed by the European Parliament and European Council in 2023. The Act entered into force in August 2024, with provisions expected to be implemented gradually over the next 6 to 36 months. Most provisions for high-risk AI systems, which could pose “serious risks” to health, safety, or citizens’ fundamental rights, were originally set to come into effect in August 2026. This development follows the U.S. explicitly banning central bank digital currency (CBDC) development in early 2025. Previously, the European Central Bank had accelerated work on the digital euro but later stated that digital cash would not launch before 2029. This underscores the EU’s evolving approach to digital regulation amidst intensifying global competition from the U.S. and China.
In-Depth AI Insights
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