The European Union, for years positioning itself as the global gendarme of technology, is beginning to loosen its grip. After a marathon of negotiations in Brussels, member states and the European Parliament have agreed to relax key provisions of the AI Act. This is a clear sign that concerns about losing competitiveness to the US and China have finally prevailed over the desire for immediate and rigid regulation of the artificial intelligence market.
The most important decision is the significant postponement of deadlines. The implementation of the most stringent rules for high-risk systems – covering biometrics, critical infrastructure or law enforcement, among others – has been delayed until December 2027. Originally, these rigours were supposed to be in place as early as August this year. The official reason for this decision is the desire to reduce bureaucracy and recurring administrative costs, which the European technology sector has complained about increasingly loudly.
Industry giants such as Siemens and ASML can also declare victory. They have fought to exempt machines from the jurisdiction of the AI Act, arguing that the sector is already subject to sufficient sectoral regulation. For Brussels, this is a difficult compromise: on the one hand, the simplification of regulations is supposed to help European companies in the global race; on the other, consumer organisations are already sounding the alarm about ‘capitulation to the technology lobby’.
Despite the general relaxation of the course, the Union remains adamant on issues of personal safety and human dignity. As early as 2 December 2024, a total ban on the use of ‘nudify’ apps for creating unauthorised intimate deepfakes will come into force. This is a direct response to recent incidents involving content generated by the Grok model from xAI. At the same time, the requirement to watermark any AI-created material will take effect.
The current turnaround in Brussels shows a new dynamic in European digital policy. While the AI Act is still regarded as the strictest set of rules in the world, EU policymakers seem to understand that regulating a fledgling technology too zealously could end up pushing innovation beyond the continent’s borders. Europe is now trying to find the golden mean between protecting citizens and surviving in the digital economy. There is now more time to adapt, but the pressure for an outcome remains immense.
