Artificial Intelligence: Council gives final green light to simplify and streamline rules
Today, the Council gave its final green light on a new regulation aiming to streamline and simplify certain rules regarding artificial intelligence (AI). The new law 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.
Application dates
Given that provisions on high-risk AI systems were due to enter into force on 2 August 2026, the co-legislators treated this part of the package with utmost priority and agreed on 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.
Other key elements of the new regulation
The new law adds 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). AI systems that generate nude images of real people or edit clothes out in existing photos to reveal intimate parts are set to be banned as of December this year.
The new regulation 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 text 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.
On the interplay of AI rules with sectoral legislation in sectors such as medical devices, toys, lifts and watercraft, the new law provides for 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. This solution effectively addresses any possible overlaps between the high-risk requirements from the AI act and those from sectoral legislation.
The products covered by the machinery regulation were exempted from direct applicability of the AI act with the Commission empowered to adopt secondary legislation under the machinery regulation which would add health and safety requirements in respect to AI systems that are classified as high-risk pursuant to the AI act.
The regulation 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
The legislative act will be published in the EU’s official journal shortly and will enter into force on the third day after this publication.
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.
