EU Rethinks AI Rules Under Pushback from Big Tech and U.S

The European Commission (EC) is currently under significant pressure from both the Trump administration and major technology companies regarding its landmark AI Act. Designed to regulate artificial intelligence across the EU, the Act has sparked intense debate about how quickly and strictly its provisions should be enforced.

In response to these concerns, the EC is considering pausing key elements of the AI Acts implementation. Among the proposals are: 

• A possible one-year grace period for high-risk AI systems, giving more time to adapt
• Postponing the enforcement of fines for transparency breaches until August 2027.

These potential changes highlight the balancing act between fostering innovation and ensuring accountability in the rapidly evolving AI landscape.

In our previous blog, The AI Revolution: What Businesses Need to Know About Upcoming Regulation, we explored the broader implications of the AI Act and what companies should prepare for. This latest development underscores how fluid the regulatory environment remains — and why businesses must stay alert to ongoing shifts.

For more information on how the EU AI Act could influence your operations and planning for compliance, contact me, James Macdonald here or our Commercial law team. 

The contents of this article is a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.

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

https://www.ft.com/content/af6c6dbe-ce63-47cc-8923-8bce4007f6e1