A PYMNTS Company

EU Agrees to Ease AI Rules, Delay Key Enforcement Measures

 |  May 7, 2026

European Union countries and lawmakers in the European Parliament reached a tentative agreement on Thursday to scale back parts of the bloc’s landmark artificial intelligence legislation, including postponing the implementation of some key provisions, a move critics say reflects Europe yielding to pressure from major technology companies.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The agreement came after nine hours of negotiations and still requires formal approval from EU governments and the European Parliament in the coming months. The revisions affect the EU’s AI Act, which entered into force in August 2024 and was designed to introduce some of the world’s toughest safeguards around artificial intelligence.

    According to Reuters, the latest changes are part of a broader effort by the European Commission to simplify recently introduced digital regulations after businesses raised concerns about overlapping compliance requirements and excessive administrative burdens. Companies had argued that the growing body of EU rules was hurting their ability to compete against rivals in the United States and Asia.

    As part of the new agreement, EU governments and lawmakers decided to push back the enforcement deadline for rules covering high-risk AI systems, including applications involving biometrics, critical infrastructure and law enforcement. The deadline has been moved to December 2, 2027, from the previously scheduled date of August 2 this year, according to Reuters.

    Negotiators also agreed to exclude machinery from the scope of the AI Act, concluding that the sector is already covered by existing industry-specific regulations. The decision followed lobbying efforts from businesses seeking to avoid duplicative oversight.

    Read more: EU Regulators Escalate Pressure on US Tech Giants

    “Today’s agreement on the AI Act significantly supports our companies by reducing recurring administrative costs,” Marilena Raouna, Cyprus’s deputy minister for European affairs, said in a statement.

    Cyprus currently holds the rotating presidency of the EU Council and played a central role in the negotiations.

    The talks also produced agreement on new restrictions targeting harmful AI-generated content. Lawmakers backed a ban on AI practices that create unauthorized sexually explicit images, responding to growing concern over content produced by Elon Musk’s xAI chatbot Grok on X, as well as sexually intimate deepfakes. Per Reuters, the ban will take effect on December 2.

    “By the end of this year everyone, but especially women and girls will be safe from horrific nudifier apps being widely available on the EU market. Today we put a clear end to this kind of violence against people and children,” said Dutch lawmaker Kim van Sparrentak.

    Mandatory watermarking of AI-generated content will also begin on December 2, adding another layer of transparency requirements for developers and platforms.

    Despite the concessions and delays, the EU’s AI framework remains the strictest regulatory regime of its kind globally. The legislation was originally driven by concerns over the technology’s impact on children, workers, businesses and cybersecurity.

    Source: Reuters