The Cyprus Presidency of the Council of the European Union and the European Parliament confirmed the agreement following negotiations that began on Wednesday night and lasted until around 4:30 a.m. Thursday.
POLITICO reported earlier Wednesday that EU countries supported Germany’s request to avoid double regulatory burdens on companies using industrial AI. Going forward, companies will only need to comply with AI requirements based on separate machine rules.
Negotiators confirmed that other industries under discussion, including medical devices, are not excluded and will remain subject to the AI Act.
The deal marks the first major rollback of rules in the digital space as the EU faces pressure from the United States over its tech laws and warnings from domestic industry and governments that tough regulations put the bloc at a disadvantage in the global AI race.
European Commission President Ursula von der Leyen welcomed the agreement, saying it would “provide a simple and innovation-friendly environment” for AI in Europe. “At the same time, we are strengthening the protection of our citizens. For safe and simple AI governance in Europe,” she told X.
In addition to postponing regulations on high-risk AI until December 2027, the agreement also gives companies a grace period to meet new requirements for watermarking AI-generated content, but for just three months instead of the six months originally proposed.
