Following negotiations that began on Wednesday evening and concluded around 4:30 a.m. on Thursday, the Cypriot presidency of the Council of the EU and the European Parliament confirmed the agreement.
EU countries backed Germany’s demand to avoid a dual regulatory burden for companies using industrial AI; they will now only need to comply with AI requirements under separate machinery rules.
Negotiators confirmed that other industries, including medical devices, will not be exempt and will remain covered by the AI law.
This agreement signifies a rollback of rules in the digital arena, responding to U.S. pressure over EU tech laws and warnings from the bloc’s industry and governments about strict restrictions impacting its AI competitiveness globally.
Commission President Ursula von der Leyen welcomed the agreement, stating it creates an “innovation-friendly environment” for AI in Europe while enhancing citizen protections for “safe and simple AI governance.”
The deal postpones restrictions on high-risk AI until December 2027 and offers companies a grace period for adhering to new requirements on watermarking AI-generated content, reduced to three months from the originally proposed six months.
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