The European Union (EU) is considering watering down key AI laws following pushback from Big Tech companies and the US government. financial times The report cited a draft document outlining the proposed changes identified so far, as well as interviews with anonymous EU officials.
The proposed changes are part of the European Commission’s recently announced “simplification agenda” and “efforts to create a more favorable business environment” in the region. In September, the European Commission launched a call for evidence with the aim of gathering research on how to simplify legislation on data, cybersecurity and artificial intelligence (AI).
An anonymous EU official said. financial times The city of Brussels said it was “engaging” with the Trump administration on possible adjustments to the AI Act and other digital regulations as part of a broader effort to simplify the legal framework.
This was announced by representatives of the European Commission. luck The committee “will always fully support the AI Act and its objectives.”
“The possibility of delaying implementation of the targeted parts of the AI Act is still under consideration within the committee,” commission spokesman Thomas Renier said in a statement. “Various options are being considered, but no formal decision has been made at this stage.”
Some of the proposed changes will impact the EU’s landmark AI law, which is one of the world’s toughest AI regulations. The law, passed in 2024, bans certain uses of AI, such as social scoring and real-time facial recognition, and imposes strict rules on its use in areas deemed “high risk,” such as health care, law enforcement, and employment. This applies not only to companies within the EU, but also to any company that provides AI products or services to Europeans. It also imposes strict transparency requirements on global companies and imposes steep fines for violations of the law.
Under the draft considered by Financial Times, Companies with so-called high-risk AI systems could be given a one-year “grace period” before enforcement begins. The draft document says the delay will allow companies in these high-risk sectors that have already adopted AI to make adjustments “without disrupting the market.”
The proposal continues to be discussed internally within the European Commission and with EU member states and may still be amended before adoption, scheduled for November 19th. Once finalized, it will need approval from the majority of EU member states and the European Parliament before it can be implemented.
The Commission is also considering postponing the start date for penalties related to transparency violations under the new AI law. If approved, fines for violations would not go into effect until August 2027, giving companies and AI developers “ample time” to adapt to the new obligations.
The law has been criticized by technology companies and startups, who say the rules are overly complex and risk stifling European innovation by creating high compliance costs and bureaucratic hurdles. Global tech companies including Meta and Alphabet Inc. have warned that the law’s broad definition of “high-risk” AI could discourage experimentation and make it harder for small developers to compete.
The Trump administration has also been critical of Europe’s regulatory approach to AI. At the Paris AI Summit earlier this year, US Vice President J.D. Vance criticized European efforts, including the AI Act, and publicly warned that “overregulation” of AI in Europe could cripple the emerging industry. In contrast, the Trump administration has taken a relatively light approach to AI regulation, arguing that innovation should be prioritized in the global AI arms race with China. Most of the U.S. AI regulations are passed at the state level, with California adopting some of the strictest rules for emerging technologies.
