EU Revises Landmark AI Legislation To Reduce Regulatory Burden After Industry Pushback

The European Union (EU) has agreed to revise parts of its artificial intelligence (AI) legislation following concerns from businesses over compliance costs and overlapping regulations.

Lawmakers approved changes to the AI Act, which was introduced in 2024, including extending compliance deadlines for companies using high-risk AI systems. Firms deploying AI in sectors such as employment, border control, and consumer products will receive additional time to meet legal requirements. Companies integrating AI into products like children’s toys will now have until August 2028 to comply.

The revisions also remove machinery from the scope of the AI Act because it is already covered under separate industry regulations. At the same time, the EU agreed to ban applications that create non-consensual sexual images or child sexual abuse material from December.

The proposed amendments still require formal approval from EU governments and the European Parliament. Technology firms had argued that existing rules were affecting Europe’s competitiveness against companies in the United States and Asia.