Europe Delays Key AI Act Provisions Amid Regulatory Shake-Up

In a major development, the European Commission has announced a postponement of certain “high-risk” AI regulations originally slated for August 2026. These rules—part of the EU’s ambitious AI Act—cover sensitive uses such as biometric identification, credit scoring, health services, and employment applications. 

This regulatory shift is being framed as a move to ease the burden on tech companies, especially large AI players, and to boost Europe’s competitiveness in the global AI race.  The Commission’s “Digital Omnibus” package also proposes changes to the GDPR and cookie consent rules, allowing more flexibility around pseudonymized data for AI training.

However, the reform isn’t without controversy. Privacy advocates and some MEPs are warning that the changes could weaken fundamental protections and give big tech too much leeway.  Meanwhile, supporters argue the relaxation is necessary to drive innovation, arguing that Europe risks losing ground to the U.S. and China if it over-regulates.