At the time of reporting, Reuters had not independently verified all details and the EU had not commented.

The Commission is exploring more flexible, guidance-based approaches for monitoring high-risk AI systems, rather than strictly prescriptive rules.

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The European Commission is weighing a partial delay to parts of the EU AI Act as part of a broader simplification package, with a decision anticipated around November 19 and framed as reducing administrative burdens while clarifying technical standards.

A simplified package could introduce a grace period, potentially delaying enforcement and fines for high-risk or generative AI compliance until mid-2027.

Officials stress the move would be a simplification rather than a retreat, aiming to balance regulatory aims with industry needs and preserve the Act’s core objectives.

EU officials say no formal decision has been made yet and negotiations among member states and informal discussions within the commission are ongoing ahead of November 19.

The AI Act, which has been in force since August 2024, uses a risk-based framework with high-risk provisions scheduled for phased implementation through 2026 and beyond.

The discussions reflect a balancing act between advancing AI regulation and accommodating multinational tech interests, with ongoing debates on how to foster innovation while ensuring oversight.

The broader context includes U.S. actions and global competition shaping EU digital policy, as the bloc seeks a robust yet adaptable governance framework for AI.

EU officials reaffirm that the AI Act remains central to Europe’s digital agenda, albeit with provisions spread out over coming years.

The finance and tech policy debate sits amid a wider international dynamic, with calls from policymakers and industry players about pausing or adjusting rules to protect competitiveness.