The European Union is reportedly considering pausing parts of its landmark Artificial Intelligence Act amid mounting pressure from the U.S. government and major tech companies.
According to the Financial Times, the European Commission plans to introduce a “simplification package” that would relax portions of its digital regulatory framework — including elements of the AI Act, which came into effect last year. The proposal is expected to be discussed on November 19.
If approved, the move could grant generative AI developers currently operating in the EU a one-year grace period for compliance and delay the enforcement of penalties for breaching transparency requirements until August 2027.
“When it comes to potentially delaying the implementation of targeted parts of the AI Act, a reflection is still ongoing,” said Thomas Regnier of the European Commission in a statement to Cointelegraph. He added that the Commission is finalizing the so-called digital omnibus, set to be presented later this month.
The EU’s AI Act, first proposed in April 2021, was designed to create a risk-based framework for AI regulation. Following approval by the European Parliament and the European Council in 2023, the Act officially took effect in August 2024, with its provisions scheduled for phased implementation over the next six to 36 months.
According to the Financial Times, most provisions targeting high-risk AI systems — those deemed to pose “serious risks” to health, safety, or fundamental rights — are scheduled to take effect in August 2026.
However, under the draft “simplification” proposal, companies found in breach of these high-risk AI regulations could be granted a one-year grace period before penalties are enforced.
The proposal remains under informal discussion within the European Commission and among EU member states, meaning key details could still change before its expected adoption on November 19, the report said.
“Various options are being considered, but no formal decision has been taken at this stage,” said EC spokesperson Thomas Regnier, emphasizing that “the Commission will always remain fully committed to the AI Act and its objectives.”
The EU’s potential pause on parts of the AI Act reflects Brussels’ evolving stance on digital regulation amid growing global competition from the United States and China.
Earlier this year, after the U.S. banned central bank digital currency (CBDC) development in early 2025, the European Central Bank accelerated its digital euro initiative — though officials have since clarified that the digital currency is unlikely to launch before 2029.
