No Delay for Landmark AI Regulations Despite Industry Pushback
The European Commission has reaffirmed its commitment to the timeline for implementing the EU’s Artificial Intelligence (AI) Act, dismissing calls from businesses and industry leaders for a postponement. The decision underscores the Commission’s determination to establish clear, risk-based rules for AI systems across the bloc.
Thomas Regnier, a spokesperson for the Commission, stated unequivocally that there will be “no stop the clock,” “no grace period,” and “no pause” in the rollout of the AI Act. The legislation, which came into force on August 1, 2024, is set to impose obligations on general-purpose AI models starting in August 2025, with stricter regulations for high-risk models following a year later.
Key Deadlines Under the AI Act
- August 2025: Obligations for general-purpose AI models take effect.
- August 2026: Regulations for high-risk AI systems become enforceable.
Delays in Code of Practice Raise Concerns
While the Commission remains steadfast on the AI Act’s implementation, it has acknowledged delays in finalizing the Code of Practice, a critical document designed to help companies comply with the new rules. Originally slated for release in May 2025, the Code may now be delayed until the end of the year.
This delay has sparked frustration among businesses, particularly as the Code is expected to provide much-needed clarity on compliance requirements. Without it, companies may struggle to navigate the Act’s complex provisions.
Industry Calls for a Two-Year Postponement
In response to the regulatory uncertainty, over 40 CEOs from major European corporations—including Airbus, BNP Paribas, Carrefour, and Philips—have urged the Commission to delay the AI Act’s implementation by two years. In an open letter to Commission President Ursula von der Leyen, the executives warned that the current timeline could undermine Europe’s competitiveness in the global AI market.
The letter highlights concerns that overlapping and unclear regulations could stifle innovation, deter investment, and put European firms at a disadvantage compared to their counterparts in the U.S. and China, where regulatory frameworks are perceived as more flexible.
Balancing Regulation and Innovation
The debate over the AI Act reflects a broader tension between the need for robust regulatory oversight and the desire to foster technological innovation. The Commission has emphasized that the Act aims to harmonize rules across the EU while ensuring the safety and reliability of AI systems.
To address industry concerns, the Commission has signaled plans to propose simplifications to digital regulations later this year, with a focus on reducing burdens for smaller companies. However, it remains unclear whether these adjustments will alleviate the pressure on businesses scrambling to meet the Act’s deadlines.
Comparing Global AI Regulatory Approaches
| Region | Regulatory Approach | Key Features |
|---|---|---|
| European Union | Risk-based, comprehensive | Strict rules for high-risk AI, transparency requirements |
| United States | Flexible, sector-specific | Guidelines rather than binding laws, emphasis on innovation |
| China | Centralized, state-driven | Focus on data security, government oversight |
What’s Next for the AI Act?
As the Commission moves forward with the AI Act, all eyes will be on how businesses adapt to the new rules. The delayed Code of Practice will be a critical resource, but its late arrival leaves little time for companies to prepare.
Meanwhile, the Commission faces mounting pressure to strike a balance between safeguarding public interests and maintaining Europe’s position as a leader in AI development. The coming months will be pivotal in determining whether the Act achieves its goals or inadvertently hampers the region’s technological progress.
Key Takeaways
- The EU will enforce the AI Act as planned, with no delays.
- Businesses face uncertainty due to the postponed Code of Practice.
- Industry leaders warn the Act could harm Europe’s competitiveness.
- The Commission aims to simplify rules for smaller companies later this year.
The AI Act represents a bold step toward regulating a rapidly evolving technology, but its success will depend on how effectively it balances innovation with accountability. For now, the message from Brussels is clear: the clock is ticking.
