The European Union is considering partially suspending its landmark artificial intelligence legislation in response to pressure from the U.S. government and large tech companies.
According to the Financial Times report on Friday, the European Commission plans to relax certain aspects of its digital rulebook, including the AI Act that came into effect last year, as part of a "simplification proposal" that will be decided on November 19.
If approved, the proposed suspension could allow generative AI providers currently operating in the market a one-year compliance grace period and delay the enforcement of AI transparency rule violation fines until August 2027.
"Discussions are ongoing regarding the potential postponement of specific parts of the AI Act," Thomas Renier from the Commission told Cointelegraph, adding that the European Commission is drafting a digital comprehensive law set to be submitted on November 19.
The Commission proposed the first EU AI law in April 2021, aimed at establishing a risk-based classification system for AI.
The legislation was passed by the European Parliament and the European Council in 2023 and is set to come into effect in August 2024, with a phased implementation expected over the next six to thirty-six months.
According to the Financial Times, most provisions targeting high-risk AI systems, which could pose "serious risks" to health, safety, or fundamental rights of citizens, are set to take effect in August 2026.
Under the draft "simplification" proposal, companies violating the rules for the highest-risk AI usage could reportedly receive a one-year "grace period."
The report noted that the proposal is still under informal discussion within the Commission and with EU member states and may change before being passed on November 19.
"Various options are being considered, but no formal decision has been made yet," Renier told Cointelegraph, adding, "The Commission will always fully support the AI Act and its objectives."
The EU's potential suspension of parts of the AI Act highlights Brussels' ongoing evolution in digital regulation amid intensifying global competition.
After the U.S. explicitly banned the development of central bank digital currencies (CBDCs) in early 2025, the European Central Bank accelerated its work on the digital euro but later stated that digital cash would not be launched before 2029.
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Original article: “EU Considers Delaying AI Act Implementation Under Pressure from U.S. and Big Tech”
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