EU announces plans to delay AI watchdog regulations

The European Commission announced plans on Wednesday to pause the implementation of some of its regulations on artificial intelligence. 

Despite years of work to position itself as a leader in AI regulation, the European Commission is seeking to soften some of its measures in the name of competitiveness. 

"We have all the ingredients in the EU to succeed," said Henna Virkkunen, the European Commission's Executive Vice-President for Tech Sovereignty, Security and Democracy.

"We have talent, infrastructure, and a large internal single market. But our companies, especially our start-ups and small businesses, are often held back by layers of rigid rules.

 "By cutting red tape, simplifying EU laws, opening access to data and introducing a common European Business Wallet we are giving space for innovation to happen and to be marketed in Europe," she added.

Holding back the AI Act

In 2024 the EU adopted the AI Act, a rulebook designed to create parameters for tech companies to operate. It's yet to be fully adopted but the Commission already wants to push back – by at least a year – obligations for AI practices deemed high-risk, such as using the technology in recruitment or deeming loan eligibility. 

The EU says it's a move designed to provide the needed standards and support tools for businesses. The Commission is also moving to centralize oversight of AI systems built on general-purpose artificial intelligence models and, as the EU aims to better compete with the US and China in this sector, officials say cutting red tape and simplifying rules is key.

"We cannot afford to pay the price for failing to keep up with the demands of a changing world," said Commissioner for Economy and Productivity, Valdis Dombrovskis. 

"So today's package of measures sends a clear message: Europe is willing and able to adapt to fully embrace a digital age and the AI technology that will drive productivity for future European growth."

Simplification or appeasement? 

Critics say it's a move that appeases the tech giants of Silicon Valley and President Donald Trump, who has long railed against EU tech regulations.

There are also fears that these new measures would undermine the bloc's efforts to create safeguards for this rapidly evolving technology.

"The EU's leadership in tech legislation – this is more important than ever considering the current geopolitical context where Big Tech companies and Trump are openly challenging our rules and regulations," said Alex Agius Saliba MEP, vice-president of the Socialists and Democrats in the European Parliament.

"We need to continue implementing our rules and protect our digital sovereignty, but also continue to inspire international partners in shaping their digital legislation."

The Commission says that people's personal data would remain secure and protected and that it remains committed to being a leader in the ethical rollout of AI technology. 

This proposal to simplify the EU's digital rulebook is just the first step and must still be signed off by both parliament and the European Council.