EU Considers Delaying AI Act Implementation Amid Business and Trump Pressure

TL;DR: European Commission considering delaying EU AI Act provisions after pressure from 46 European companies (Airbus, Lufthansa, Mercedes-Benz) and Trump administration. Potential one-year grace periods for high-risk AI breaches, delayed fines until August 2027, and flexible monitoring requirements. Main obligations still scheduled for August 2026 implementation, with proposals expected 19 November.

The European Commission confirmed that a “reflection” remains “ongoing” regarding potential delays to the EU’s Artificial Intelligence Act, following intense pressure from businesses and the Trump administration. The world’s first comprehensive AI legislation came into force in August 2024, though most obligations remain pending.

Proposed Implementation Changes

According to internal documents, the commission is evaluating several modifications. A one-year grace period could apply to companies breaching rules on highest-risk AI, whilst generative AI providers who placed products on market before implementation dates could receive a one-year pause “to provide sufficient time to adapt their practices within a reasonable time without disrupting the market.”

The commission also considers delaying transparency rule violation fines until August 2027, providing “sufficient time for adaptation of providers and deployers of AI systems” to implement obligations. Greater flexibility for high-risk AI developers over market performance monitoring may allow following less prescriptive guidance than originally envisaged.

International and Business Pressure

The EU faces repeated pressure from the Trump administration to weaken tech company regulation. The US president recently threatened tariffs on countries with tech regulations or digital taxes deemed to “harm or discriminate against American technology.” Meta announced this year it would not sign the commission’s code of practice for general-purpose AI models.

European companies also seek relief. Forty-six companies including Airbus, Lufthansa and Mercedes-Benz signed an open letter urging a two-year pause to allow “reasonable implementation” and “further simplification of the new rules,” demonstrating Europe was “serious about its simplification and competitiveness agenda.”

Political Response

European Commission spokesperson Thomas Regnier emphasised Brussels maintains “constant contacts with our partners around the globe” but third countries cannot decide how the EU legislates. “This is our sovereign right,” he added, stating the commission would “always remain fully behind the AI Act and its objectives.”

Italian Social Democrat Brando Benifei, involved in drafting the law, expressed deep scepticism about reopening the AI Act before full implementation and without impact assessment. “I strongly oppose any ‘stop the clock’ or delays that would only breed legal uncertainty and leave people exposed to risks the AI act was designed to address proportionately,” he stated.

Looking Forward

The proposals could change before expected release on 19 November. Once published, they require agreement by EU member states and the European parliament. The commission faces balancing act between business competitiveness concerns and maintaining robust AI regulation protecting fundamental rights. Most high-risk AI obligations remain scheduled for August 2026 or one year thereafter.

Source Attribution:

Share this article