This week saw the European Commission present a new set of measures that could, according to the organisation, save businesses up to €5 billion ($5.76 billion) in administrative costs by 2029.

These amendments are designed to enable Europe’s businesses to “spend less time on administrative work and compliance” and more on “innovating and scaling up” as European companies seek to grow and lead in technology – while committing to the highest standards of safety.

A critical part of this is the confirmation of the intention to delay the introduction of central parts of the AI Act, which came into force in August 2024.

Changes to the AI Act could make it easier for technology companies to use personal data to train AI models – a hot debate across the continent currently.

The announced plans were part of the Commission’s digital omnibus, which has been designed to streamline technology rules concerning the AI Act, along with GDPR, the ePrivacy director and the Data Act.

It has been proposed that the delay be put in place until December 2027, more than a year after the original date of August 2026.

“Efficient implementation of the AI Act will benefit society, safety and fundamental rights. However, it requires clear guidance and support,” the Commission said. “Companies will only have to apply the rules for high-risk AI systems once the necessary support tools and standards are in place. This gives them up to 16 months to comply.”

When it was first introduced, the Commission’s AI Act proposal set a precedent that AI needed to be regulated, suggesting strong collaboration between enterprise and government to protect citizens.

The Act itself has taken years to negotiate and isn’t fully in place yet – and has faced some resistance, which has led to more conversations over how Europe should balance regulation and digital innovation.

Some view delaying implementation could create further issues of complacency.

“This then leads to a crisis-driven scramble when deadlines finally arrive. The same thing happened with GDPR, so businesses must understand that the delay isn’t a reason to postpone; it’s a reason to start preparing well ahead of the December 2027 deadline,” said Nikolas Kairinos, CEO of RAIDS AI.

“Today’s delay aside, the fundamental issue hasn’t changed; organisations need to build AI governance capabilities that enable innovation and competitive advantage. Failure to do so will only result in damaged reputations, contract losses and a lack of competitive edge.”

Despite visible interest in Europe’s AI infrastructure, this news also comes as Europe falls behind in AI adoption. A study by Accenture revealed that Europe is behind the US, with 56% of organisations yet to scale transformative AI investment.

Likewise, a study by the Commission revealed that, across the EU, only 13.5% of enterprises were using AI technologies as of 2024.

Related stories

Europe on the brink: Telecom CEOs warn of digital standstill without urgent EU action

Inter.link signs agreement with Vodafone for next-generation interconnectivity across Europe

AST SpaceMobile, Vodafone launch European satellite operations centre in Germany