EU Delays High-Risk AI Rules Until 2027

According to Sifted, EU officials have proposed delaying the rollout of controversial AI Act rules for high-risk systems until December 2027. The 16-month delay is part of a broader “Digital Omnibus” package designed to simplify the bloc’s growing tech regulations. The move comes after dozens of European startup leaders including Synthesia’s Victor Riparbelli and Lovable’s Anton Osika signed an open letter in June calling the current implementation a “rushed ticking timebomb.” The package also includes proposals to simplify GDPR rules for businesses and clarify how GDPR applies to AI. A commission spokesperson claimed the initiative helps European companies grow while maintaining high standards.

Everyone’s Mad, Nobody’s Happy

Here’s the thing about trying to please everyone – you usually end up pleasing no one. The EU’s attempt at compromise has managed to anger both pro-regulation and anti-regulation camps simultaneously. Alexandre Roure from CCIA Europe calls it a “positive step forward” but warns the regulatory landscape remains a “complicated patchwork.” Meanwhile, Daniel Leufer at Access Now describes the omnibus as a “disaster” that creates “a swamp of legal uncertainty never before rivalled.” Basically, the EU has achieved that rare political feat of uniting everyone in frustration.

Startups Want More Than Just Delays

While startup leaders welcome the breathing room, they’re making it clear that regulatory delays alone won’t solve Europe’s innovation problems. Maya Noël of France Digitale says simplifying regulations “alone will not make our startups competitive.” She’s calling for concrete actions like European preference in public procurement and more agile rules on market consolidation. So the message is clear: startups need the EU to actually buy their products, not just delay rules that might affect them. When you think about it, that’s a pretty reasonable ask – what’s the point of building European tech if European institutions won’t use it?

The Real Problem Nobody’s Talking About

Now here’s where it gets messy. The delay until late 2027 creates a massive implementation gap that could actually hurt the very companies the EU claims to protect. High-risk AI systems used in law enforcement, public services, and education now face years of uncertainty about what rules will eventually apply. And let’s be real – in technology, 16 months might as well be a decade. Companies developing these systems need to make investment decisions now, not in 2027. The regulatory ambiguity might actually slow down innovation more than clear, timely rules would have. It’s the classic case of regulatory uncertainty being worse than regulatory burden.

What This Means for Tech Regulation

This whole situation reveals something important about the current state of tech regulation. The EU, once the undisputed global standard-setter with GDPR, is now facing serious pushback from its own ecosystem. Even as they try to simplify things with this “Digital Omnibus,” they’re discovering that you can’t just patch together regulations after the fact. The underlying tension between protecting citizens and fostering innovation isn’t going away. And with AI evolving at breakneck speed, by the time these delayed rules take effect in 2027, will they even be relevant to the technology landscape? That’s the billion-euro question nobody seems to have an answer for.