EU reaches deal to simplify AI rules, avoiding double regulation

Key Changes to the EU’s AI Regulations

Member states of the European Union and the European Parliament have reached a provisional agreement to simplify the bloc’s artificial intelligence (AI) rules as part of an omnibus package. This deal aims to streamline the regulatory landscape for AI systems while addressing concerns about legal and commercial uncertainty.

The Digital Omnibus on AI was introduced five months ago with the goal of boosting competition in the AI sector by making compliance with the EU Artificial Intelligence Act more straightforward. However, the proposed legislation has sparked debate, with some critics arguing that it dilutes existing AI regulations.

“We are not weakening any safety rules; we are clarifying the rules for companies in Europe,” said Arba Kokalari, the rapporteur for the European Parliament’s Internal Market committee. “The current state is that companies are confused about whether they should follow the AI act or sectoral legislation. Companies should not be regulated twice for one thing.”

What Are the Amendments?

The EU AI Act categorizes AI systems based on the level of risk they pose to health, safety, and fundamental rights, ranging from minimal to unacceptable risk. Stricter obligations are applied as the risk level increases.

High-risk AI systems include those embedded in critical infrastructure, education, employment, migration, asylum, and border control. Previously, this category also included products classified as “machinery,” such as smart home appliances.

Under the new agreement, “high-risk” AI systems will have an additional year—until December 2027—to comply with EU legislation. For AI used in products like lifts or toys, the deadline extends to August 2, 2028. Additionally, there are simpler rules for small and medium-sized businesses to avoid duplication between sectoral and AI rules.

Companies developing AI systems will also gain access to a “EU-level sandbox,” allowing them to test their products before they enter the market.

Ban on ‘Nudification Apps’

One of the most significant changes in the Digital Omnibus is the prohibition of AI systems that generate non-consensual sexually explicit and child sexual content. This includes AI “nudification apps” that digitally remove people’s clothing without their consent.

The ban covers explicit images, videos, or audio created without a person’s consent. Companies will have until December 2 to align their systems with the EU’s new regulations and implement mandatory watermarking of AI-generated content.

Renew Europe lawmaker Michael McNamara stated that the new rules apply to any photos where a person’s “intimate parts” are exposed. He referenced the controversy surrounding Elon Musk’s AI chatbot Grok, which was used to generate sexually explicit AI images of women and children online.

“We wanted to have clarity on what we think about [nudification apps] in Europe and that we are not accepting of it,” said Kokalari. According to McNamara, the rules only apply to content that clearly depicts a human being, not synthetic AI characters.

Next Steps

While the agreement represents a major step forward, it still requires formal approval from the European Parliament and EU member states. The finalization of these regulations will shape the future of AI governance in the European Union, balancing innovation with ethical considerations and consumer protection.