The European Commission is proposing a pause to parts of its AI laws amid intense pressure from big tech companies and the U.S. government, the Financial Times reported .
The regulator is set to soften part of its digital rules, including its AI act that entered into force last year, in a decision on a so-called simplification package on Nov. 19, the report added.
The European Commission did not immediately respond to a request for comment from Seeking Alpha.
The move reflects EU efforts to make the region more competitive against the U.S. and China. The draft proposal comes amid a broader debate over how strictly the bloc should enforce its digital rules in the face of a backlash from big tech companies supported by U.S. President Donald Trump, according to the report.
Fears of antagonizing Trump into cutting off intelligence or weapon supplies to Ukraine or starting a trade war with the bloc saw Brussels agree to a tentative trade deal in August, but EU officials are wary of any moves that could provoke the U.S. into retaliatory measures, the report added.
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, a senior EU official told the news outlet.
The legislation entered into force in August 2024 but several provisions only come into effect in coming years. A large part of the provisions for high-risk AI systems, which can pose “serious risks” to health, safety, or citizens’ fundamental rights, are set to come into effect in August 2026.
In the draft proposal, seen by the FT, the commission is considering giving companies violating the rules on the highest-risk AI use a “grace period” of one year, the report noted.
The draft proposal was still subject to informal discussions within the Commission and with European countries and could still change ahead of its adoption on Nov. 19, the officials noted. Once the Commission puts forward its proposal, it will still have to be approved by a majority of EU countries and the European Parliament.
Generative AI system providers who have already placed their services on the market before the implementation date could thus get a one-year pause from the laws to provide sufficient time and to adapt their practices within a reasonable time without disrupting the market, the report added.
The regulator is also suggesting that it delay imposing fines for violations of its new AI transparency rules until August 2027 to “provide sufficient time for adaptation of providers and deployers of AI systems” to implement the obligations, according to the report.
In addition, the draft looks to make the compliance burden for companies easier and centralize enforcement through its own AI office.
Several companies, including Meta Platforms (META) have warned that the EU’s approach to regulating AI risks cutting the continent off from accessing cutting-edge services.
A spokesperson said discussions were still ongoing within the Commission regarding potential delays to “the implementation of targeted parts of the AI act” and that “various options are being considered”. The spokesperson noted that the bloc remained “fully behind the AI Act and its objectives,” the report added.