
Brussels is forging ahead with the implementation of its landmark AI Act, issuing new guidelines on banned artificial intelligence applications despite resistance from Big Tech and warnings from U.S. President Donald Trump. According to The Financial Times, the European Commission is set to release crucial guidance on Tuesday regarding the enforcement of provisions that prohibit certain AI uses, such as scraping online data for facial recognition databases. These bans officially took effect on Sunday as part of the EU’s broader regulatory strategy.
The AI Act, passed in 2023, is widely regarded as the most comprehensive regulatory framework for artificial intelligence worldwide. Additional measures aimed at large-scale AI models and high-risk applications, including those in healthcare, are expected to be introduced in phases through 2027. Per The Financial Times, Brussels remains committed to implementing these regulations even as Trump signals potential retaliation over the EU’s scrutiny of U.S. tech companies.
Trump has previously criticized European digital regulations, arguing that penalties against American firms amount to unfair taxation. His administration has also moved to roll back AI regulations domestically, favoring private-sector-led development. During his first week back in office, Trump promoted a $500 billion AI infrastructure initiative called Stargate, spearheaded by Japan’s SoftBank and U.S.-based OpenAI. He has also signed executive orders aimed at reducing regulatory constraints on AI development.
Meanwhile, the EU continues to tighten oversight of major technology firms. The bloc has already begun reassessing investigations into companies such as Apple, Meta, and Google under broader digital market regulations. The Financial Times reports that European officials are concerned about potential diplomatic friction with Washington but remain resolute in enforcing AI rules.
“There is definitely a worry in Brussels that the new US president will raise pressure on the EU around the AI Act to ensure that US companies don’t have to deal with too much red tape, or potentially even fines,” said Patrick Van Eecke, co-chair of law firm Cooley’s global cyber, data, and privacy practice, as reported by The Financial Times.
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The AI Act mandates that companies developing “high-risk” AI systems enhance transparency, detailing how their models are constructed and deployed. Developers of the most powerful AI models face even stricter obligations, including conducting risk assessments. Companies failing to meet these standards risk hefty fines or outright bans from the EU market.
Big Tech has expressed concerns over what it perceives as excessive regulatory burdens. Some firms, including Meta, have argued that stringent rules could hinder AI innovation and investment in Europe. According to The Financial Times, industry leaders have particularly opposed provisions requiring transparency in data usage, access to AI model code for risk assessment, and limited regulatory exemptions for open-source and smaller AI firms.
Despite these challenges, Brussels remains steadfast in its goal of positioning the EU as “the global hub for trustworthy AI.” One senior EU official involved in the AI Act’s implementation told The Financial Times that while Trump’s administration has exerted pressure, the EU does not intend to revise the law. However, the official acknowledged the need to balance enforcement with fostering innovation.
“What we can do is ensure that it is as innovation-friendly as possible, and that’s what we’re doing right now,” the official stated. “There’s flexibility in the rules and we’re looking at how we use that.”
Source: The Financial Times
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