EUs Artificial Intelligence Act Faces Delay Amid Pressure from US and Tech Giants

The European Union’s pioneering Artificial Intelligence Act, which came into force in August 2024, is facing potential delays to key provisions amid substantial lobbying from major technology firms and pressure from the administration of Donald Trump. Although the landmark legislation established the EU as the first global bloc to regulate artificial intelligence, most of its most stringent requirements have yet to be enforced, with obligations for highrisk AI systems only set to take effect from August 2026.

Discussions are currently ongoing within the European Commission regarding a pause in implementing particular elements of the Act. According to internal documents, providers of generative AI systems already present in the market before the regulation’s main provisions take effect could enjoy a one-year adaptation period. This move may grant companies additional time to adjust without significantly disrupting market dynamics. Reports also suggest a potential delay of fines for breaches of transparency requirements on AI until August 2027, as the Commission seeks to allow organisations to meet the new standards without undue haste.

This reconsideration follows sustained criticism from both sides of the Atlantic. The Trump administration has openly challenged the EU’s regulatory agenda, warning of possible tariffs on states with measures perceived to unfairly target US technology firms. Large corporations, including Meta, have declined to endorse voluntary codes of practice, arguing that they introduce new uncertainties and obligations exceeding even those set by the Act itself. Meanwhile, European industrial heavyweights such as Airbus, Lufthansa and MercedesBenz, along with dozens of others, have called for a two-year delay to streamline compliance and bolster Europe’s competitiveness on the global stage.

The Commission maintains that any decisions around implementation timings remain under consideration and has reaffirmed its sovereignty over such regulations. European lawmakers involved in crafting the legislation have voiced concern that excessive postponement may foster legal ambiguity and expose citizens to risks the Act was designed to mitigate.

Proposed changes and adaptations to the impending Act will need agreement from both EU member states and the European parliament. As the deadline approaches, the outcome will signal to the global market the balance the bloc seeks to strike between technological innovation, consumer protection and international diplomatic pressures.