EU Strikes Provisional Deal on Diluted AI Rules
EU countries and European Parliament lawmakers reached a provisional deal on Thursday to delay and soften landmark artificial intelligence rules, Reuters reported. The agreement pulls back obligations that had been scheduled to take effect under the original AI Act framework.
The deal reflects sustained pressure from European businesses and member-state governments who argued that the original timeline would harm competitiveness.
What the Deal Changes
The provisional agreement delays the entry into force of several key AI Act obligations, including requirements on general-purpose AI models and transparency rules for high-risk AI systems. Specific revised timelines were not immediately published alongside the announcement.
The European Parliament and the Council of the EU must still formally ratify the provisional text before it becomes binding law.
The original AI Act, which the EU passed in 2024, was the world’s first comprehensive legislative framework for artificial intelligence. It created a tiered risk classification system that imposed the strictest obligations on AI applications in sensitive domains such as employment, education, and critical infrastructure.
General-purpose AI models, including large language models, faced their own dedicated compliance chapter.
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Background
The AI Act entered into force in August 2024 after years of negotiation. Its general-purpose AI provisions were due to apply in August 2025, with rules on high-risk applications phased in through 2026 and 2027.
Industry groups including major technology lobbies in France and Germany pushed hard for delays, arguing that compliance costs would divert resources from AI development at a time when European firms lag U.S. and Chinese competitors. Several member-state governments backed those arguments.
The Commission signaled openness to amendments in early 2026, setting the stage for Thursday’s provisional compromise.
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What Comes Next
The provisional deal must pass a formal vote in the European Parliament and receive sign-off from the Council. That process typically takes several weeks.
Once ratified, the revised text will replace the original AI Act timeline. For cryptocurrency and decentralized AI projects operating in Europe, the delay may provide additional runway before compliance obligations attach to AI-powered trading tools, autonomous agents, and generative content systems that regulators could classify as high-risk.
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