EU countries and European Parliament lawmakers have struck a provisional deal on a watered down AI Act. Implementation for high risk systems will be delayed until December 2027, citing lower administrative costs and fairer competition. The deal still bans AI generated explicit images and requires mandatory watermarking for AI output, reshaping compliance timelines across the bloc.
EU member states and lawmakers failed to agree on updated artificial intelligence rules, after talks stalled for 12 hours. Negotiations are set to restart next month, with some countries pushing exemptions for sectors already covered by existing regulation. The deadlock could advantage Big Tech, while European firms focused on safety face fresh uncertainty under the AI Act, widely seen as the world’s strictest framework.
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