EU Floats Tweaks, New Grace Periods in AI Act

By Edith Hancock

The European Union could implement new changes to its Artificial Intelligence Act in a bid to make it easier for companies to obey the law, according to a draft proposal seen by The Wall Street Journal.

The package is set to be formally presented by the European Commission on Nov. 19, based on a timetable on the European Commission's website, and could still change before then. The text is part of a broader package of measures that Brussels is proposing to simplify the bloc's digital regulations.

Under the planned tweaks, some groups whose generative AI systems are already on the market would be offered a grace period to help them comply with obligations on having their systems watermarked to increase transparency. The text also proposes adding clarity as to how the law fits in with the rest of the EU's digital rulebooks, including the Digital Services Act.

"The Commission has committed to a clear, simple, and innovation-friendly implementation of the AI Act," the document said.

The EU faces significant pressure to water down or delay the implementation of the AI Act from tech companies and lobby groups, which say the rules add red tape and stifle innovation. The law--along with several of the EU's stack of tech regulation--has also stoked tensions with Washington as U.S. officials say the rules are a burden for American tech groups.

The AI Act entered into force in August 2024, but enforcement for some of its rules for different types of AI tools has been staggered. Rules on data governance, transparency, documentation and human oversight for what the EU deems high-risk AI systems are due to come into effect on Aug. 2 next year and 2027.

A spokesperson for the commission--the bloc's executive arm tasked with drafting EU legislation--said that officials are still considering whether they should seek to delay implementing some parts of the AI Act to help companies comply with it.

"Various options are being considered but no formal decision has been taken at this stage," commission spokesperson Thomas Regnier said. "The commission will always remain fully behind the AI Act and its objectives."

A tweak in the draft proposal is offering a one-year grace period to companies that need to retroactively make their generative AI systems readable as AI-generated or manipulated, meaning authorities wouldn't be able to penalize groups for falling short of the rules until August 2027.

The draft also includes delaying fines for companies that don't obey certain transparency requirements by one year to August 2027 "to provide sufficient time for adaptation of providers and deployers of AI systems" to comply with the rules.

Speaking to reporters on Friday, Regnier said that EU officials have been in continuous contact with counterparts in the U.S., but that Brussels should ultimately have the sovereignty to write its own rules.

"It's not for a third country to decide how we legislate," he said.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

November 07, 2025 08:22 ET (13:22 GMT)