Artificial Intelligence: Council and Parliament agree to simplify and streamline rules
Today, the Council presidency and European Parliament negotiators reached a provisional agreement on a proposal to streamline certain rules regarding artificial intelligence (AI).
The proposal forms part of the so-called ‘Omnibus VII’ legislative package in the EU’s simplification agenda. The package includes proposals for two regulations aiming to simplify the EU’s digital legislative framework and the implementation of harmonised rules on AI.
“Today’s agreement on the AI act significantly supports our companies by reducing recurring administrative costs. It ensures legal certainty and a smoother and more harmonised implementation of the rules across the Union, strengthening EU’s digital sovereignty and overall competitiveness. At the same time, we are stepping up the protection of children targeting risks linked to the AI systems. This agreement is clear evidence of our institutions’ ability to act swiftly and deliver on our commitments. It marks the first deliverable under the ‘One Europe, One Market’ roadmap agreed by the three institutions last week, well within the set deadline.”
– Marilena Raouna, Deputy Minister for European affairs of the Republic of Cyprus
The Commission had proposed to adjust the timeline for applying rules on high-risk AI systems by up to 16 months, so that the rules start to apply once the Commission confirms the needed standards and tools are available. The Commission had also proposed further targeted amendments to the AI act that would extend certain regulatory exemptions granted to SMEs also to small mid-caps (SMCs), reduce requirements in a very limited number of cases, extend the possibility to process sensitive personal data for bias detection and mitigation, reinforce the AI Office’s powers and reduce governance fragmentation. Given that provisions on high-risk AI systems are due to enter into force on 2 August 2026, the co-legislators have treated the proposal with utmost priority, and, in that perspective, broadly maintained the thrust of the Commission’s proposal.
Main amendments introduced by the co-legislators
The co-legislators added a new provision in the AI act, prohibiting AI practices regarding the generation of non-consensual sexual and intimate content or child sexual abuse material (CSAM). The provisional agreement also introduces a fixed timeline for the delayed application of high-risk rules: the new application dates would be 2 December 2027 for stand-alone high-risk AI systems and 2 August 2028 for high-risk AI systems embedded in products.
Furthermore, the provisional agreement reinstates the obligation for providers to register AI systems in the EU database for high-risk systems, where they consider their systems to be exempted from classification as high-risk. It also reinstates the standard of strict necessity for the processing of special categories of personal data for the purpose of ensuring bias detection and correction.
The provisional agreement postpones the deadline for the establishment of AI regulatory sandboxes by competent authorities at national level until 2 August 2027 and reduces the grace period for providers to implement transparency solutions for artificially generated content from 6 months to 3 months, with the new deadline set on 2 December 2026. The deal between the co-legislators also clarifies the competences of the AI Office for the supervision of AI systems based on general-purpose AI models where the model and that system are developed by the same provider by listing exceptions where national authorities remain competent, including law enforcement, border management, judicial authorities and financial institutions.
As for the AI act’s rules for industrial AI and their interplay with sectoral legislation in sectors such as medical devices, toys, lifts, machinery and watercraft, a compromise was found between the co-legislators on a mechanism that allows to resolve situations in which sectoral law has similar AI-specific requirements to the AI act, by limiting the latter’s application in those specific cases through implementing acts. In addition to this, a compromise was found to exempt the machinery regulation from direct applicability of the AI act. The Commission was also empowered to adopt delegated acts under the machinery regulation which would add health and safety requirements in respect of AI systems that are classified as high-risk pursuant to the AI act. This solution effectively addresses any possible overlaps between the high-risk requirements from the AI act and those from sectoral legislation. The provisional agreement also adds a new obligation for the Commission to provide guidance to assist economic operators of high-risk AI systems covered by sectoral harmonisation legislation in complying with the high-risk requirements of the AI act in a manner that minimises compliance burden.
Next steps
Today’s provisional agreement must be now endorsed by the Council and the European Parliament before being submitted to a legal/linguistic revision with a view to the formal adoption of the legislative act by the co-legislators in the coming weeks.
Background
In October 2024, the European Council called on all EU institutions, member states and stakeholders, as a matter of priority, to take work forward, notably in response to the challenges identified in the reports by Enrico Letta (‘Much more than a market’) and Mario Draghi (‘The future of European competitiveness’). The Budapest declaration of 8 November 2024 subsequently called for ‘launching a simplification revolution’, by ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for SMEs.
Since February 2025, as a follow-up to the call by EU Leaders at that and subsequent meetings, the Commission has put forward ten ‘Omnibus’ packages aiming to simplify existing legislation on sustainability, investment, agriculture, small mid-caps, digitalisation and common specifications, defence readiness, chemical products, digital issues including on AI, environment, the automotive sector and food and feed safety.
