EU open to reviewing AI rulebook

The European Union is signalling a potential shift in its approach to regulating AI barely a year after implementing the Artificial Intelligence Act (AI Act). While initially hailed as a historic moment in regulating AI technology, Brussels is now indicating an openness to adjustments amid growing pressure from the industry.

The potential change in approach comes as the new US administration has urged Europe to ease its AI regulations, coinciding with economic impacts from unpredictable US tariffs. At the same time, President of the European Commission Ursula von der Leyen embraced AI as a means to strengthen Europe's competitiveness and independence.

Executive Vice-President of the European Commission for Technological Sovereignty, Security and Democracy, Henna Virkkunen, recently outlined a new strategy aimed at promoting AI rules that are easier for companies to adhere to, highlighting the need for a faster and simpler environment to boost AI investments. While reaffirming the core objectives of the AI Act, Virkkunen acknowledged the "administrative burden" and indicated a willingness to consider cutting some reporting obligations.

The Commission plans to seek input from the industry to identify areas where regulatory uncertainty is hindering AI development and adoption. This feedback will contribute to a broader review of digital rulebooks scheduled for the end of the year, with a senior Commission official stating that "nothing is excluded" from this review. The openness to revising the AI Act signifies a potential move towards a more industry-friendly regulatory landscape in Europe, balancing the initial focus on strict control with the need to foster innovation and economic competitiveness in the face of global pressures.