EU Council and Parliament reach agreement over Omnibus package for AI

The European Parliament and the Council of the European Union have reached a provisional agreement on the Digital Omnibus package for AI. The package introduces targeted amendments to the Artificial Intelligence Act (AI Act), including an adjusted timeline for the application of rules on high-risk systems. Under the new fixed schedule, regulations for stand-alone high-risk systems will apply from 2 December 2027, while high-risk AI systems embedded in products will take effect on 2 August 2028.

Key amendments include a new prohibition on AI practices that generate child sexual abuse material (CSAM) or non-consensual sexual images. The package also extends regulatory exemptions previously granted to smaller businesses (SMEs) employing fewer than 250 employees and a turnover of under €50 million to include small mid-caps (SMCs), which employ up to 1,000 staff with a turnover below  €200.

In addition, the agreement strengthens the powers of the AI Office and allows for the processing of sensitive personal data specifically for bias detection and mitigation. 

Additional reporting by IAPP.

In a related announcement, the Commission has confirmed that the fourth meeting of the EU-Japan Digital Partnership Council in Brussels has resulted in an agreement to accelerate regulatory, research and industry cooperation on data, AI, quantum, semiconductors, digital infrastructure and online platforms. 

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