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EU Strikes Omnibus Deal to Simplify AI Act Rules

Brussels: The European Union has cleared a political agreement on the most consequential revision of its Artificial Intelligence Act since adoption, with Council and Parliament negotiators settling on a package that simplifies obligations, extends compliance windows and adds new prohibitions for the most harmful generative tools. The deal, struck on 7 May and now informally branded the AI Act Omnibus, recasts the bloc’s headline digital rulebook before it has even reached full applicability, scheduled for 2 August 2026.

The most operationally significant move concerns high-risk AI systems. Companies deploying biometric identification, employment screening or critical-infrastructure tools will now have a longer runway to demonstrate conformity with the regulation’s documentation, risk-management and post-market monitoring requirements. The grandfathering arrangement applied to generative models placed on the EU market before 2 August 2026 follows similar logic; watermarking obligations for synthetic outputs do not bind those legacy systems until 2 December 2026, four months later than the original schedule.

That postponement reflects a quieter shift in Brussels’ regulatory mood. After two years of front-loaded enforcement promises, the Commission has accepted that supervisory authorities and notified bodies are not ready, particularly outside the bloc’s largest member states. The provisional agreement pushes the deadline for establishing AI regulatory sandboxes at national level to 2 August 2027, an admission that even well-resourced administrations have struggled to build the technical capacity needed to test borderline systems before market deployment.

Yet the package is not a wholesale retreat. Negotiators added a prohibition on so-called nudifier applications, generative systems trained to fabricate intimate imagery from ordinary photographs, with the ban entering into force on 2 December 2026. Civil society groups had warned for months that the original AI Act left a loophole around synthetic intimate content distinct from deepfake political manipulation, and the new text closes it. Maximum penalties of €35 million or 7 percent of global turnover, whichever is higher, remain unchanged for prohibited practices.

A second carve-out addresses industrial AI. Systems already covered by the Machinery Regulation, including the safety logic embedded in robotic assembly lines and process-control software, are now exempt from the parallel AI Act regime. The change resolves a long-running complaint from German and Italian manufacturers, who argued that duplicate conformity assessments threatened to slow factory automation investments at precisely the moment the Industrial Accelerator Act, due for a Council policy debate on 28 May, aims to speed them up.

For the Commission’s enforcement architecture, the Omnibus carries strategic consequences. The AI Office, set up within the Directorate-General for Communications Networks to police general-purpose models, retains its core remit but now operates against a calendar that gives industry incumbents an extra layer of legal certainty. Smaller European model developers, who had lobbied for the same flexibility, secured narrower wins. The agreement does not relax the transparency obligations on model providers that supply downstream deployers, an asymmetry that several Parliament rapporteurs flagged during the trilogue.

Critics inside the Parliament’s internal market and civil liberties committees argue the Omnibus risks normalising the practice of revisiting flagship regulations before they bite. They point to parallel rewrites of the Corporate Sustainability Reporting Directive and the AI Liability proposal as evidence that the second-term Commission is treating its Green Deal-era acquis as draftable rather than settled law. Defenders counter that the AI Act was always intended as an iterative framework and that synchronising compliance with global standards-setting work, including the Council of Europe’s AI Convention, requires regular adjustment.

The text now returns to the Council of the EU and the Parliament’s plenary for formal endorsement, expected before the summer recess. National data-protection authorities will then face their own deadline crunch. By 2 February 2027, each member state must designate the competent authority responsible for market surveillance, a step that nine countries have yet to legislate. The Omnibus has bought them time, but the underlying obligation to enforce remains, and the political cost of further slippage will fall on national capitals rather than on Brussels.