Quick Breakdown
- The EU is considering temporarily easing the enforcement of certain aspects of the AI Act due to pushback from the U.S. and Major Tech firms.
- Generative AI companies may gain a one-year compliance grace period, delaying fines until 2027.
- The proposal will be reviewed on November 19, with officials emphasizing the EU remains committed to the AI Act’s core goals.
The European Union is reconsidering how quickly it enforces its newly launched artificial intelligence regulations, following pushback from the United States and major technology companies operating in Europe.
According to a report by the Financial Times, the European Commission is preparing a “simplification package” that could pause or soften enforcement of specific provisions under the AI Act, which officially came into effect in August 2024. The proposal is expected to be discussed and potentially adopted on November 19.
Grace period for Generative AI firms on the table
If approved, generative AI companies already serving EU users could receive a one-year grace period before being required to comply with all transparency and safety obligations under the law. This would also delay the imposition of penalties for non-compliance until August 2027.
Thomas Regnier, a spokesperson for the European Commission, confirmed that discussions are ongoing but stressed that nothing has been finalized
“A reflection is still ongoing,”
he said, adding that the Commission remains committed to the objectives of the AI Act.
Background: A gradual rollout was always planned
The EU first unveiled the AI Act in April 2021, positioning it as the world’s most comprehensive regulatory framework for artificial intelligence. The law employs a risk-tiered system, with the strictest rules applying to AI tools that could impact health, safety, or fundamental rights.
While the act entered into force in August 2024, many of the more challenging compliance requirements — especially for high-risk AI systems — are not scheduled to take effect until August 2026. The upcoming proposal could further delay these timelines.
Balancing regulation and competition
The possible delay highlights Europe’s ongoing struggle to strike a balance which includes protecting citizens from AI abuses, encouraging innovation and competitiveness and responding to geopolitical pressure, particularly from the U.S. and China.
Similar recalibrations have appeared in other areas. For instance, after the U.S. banned further development of a central bank digital currency (CBDC) in early 2025, the European Central Bank pushed ahead with the digital euro — but later confirmed it won’t be ready before 2029.
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