EU to Dilute AI Law Under Pressure From Big Tech, U.S.

Brussels — In a surprising policy shift, the European Commission is set to relax key provisions of its landmark artificial intelligence (AI) regulation following intense pressure from U.S. tech giants and American political interests. The move marks a recalibration of Europe’s regulatory ambition—and raises questions about the balance between innovation and protection.

What’s Changing

When the EU’s AI Act was passed, it was hailed as the most robust regulatory framework for artificial intelligence in the world. But, according to senior EU officials, a proposal to pause some of its toughest rules is now on the table. The changes—expected to be formally announced soon—would delay certain compliance deadlines and simplify regulations that govern high-risk AI systems.

Critics argue that this backtracking undermines Europe’s credibility in global AI governance. Proponents, however, say that easing the rules will give European businesses breathing room to compete with U.S. and Chinese tech firms.

Big Tech’s Role

The pressure to water down the law is reportedly coming from U.S. technology companies. Long-standing concerns over the cost and complexity of compliance had already made many businesses nervous, but sources say that direct lobbying efforts have intensified in recent months.

American firms argue that the current regulation threatens their access to the European market. Meanwhile, EU policymakers appear to be prioritizing economic competitiveness, aiming to strike a delicate balance between innovation and regulation.

Competitiveness and Risk

By scaling back some of its regulatory measures, the European Commission hopes to boost the continent’s ability to scale AI-driven businesses—but at what cost? Civil society groups are warning that easing safeguards could put European citizens at greater risk. Key areas of concern include:

• Privacy: High-risk AI tools—like those used in hiring, credit scoring, or law enforcement—could operate with fewer protections.

• Bias & Discrimination: Without rigorous regulation, critics worry AI models could reinforce systemic biases and widen inequality.

• Transparency: Simpler regulations may reduce transparency obligations, making it harder for users to understand how AI decisions are made.

Global Implications

This regulatory pivot has global significance. The U.S. and China remain the dominant players in commercial AI, and Europe’s original AI Act was a bid to reclaim influence. By softening its stance, Europe risks sending a signal that economic competition outweighs ethical leadership in AI.

If the proposed changes go through, it could spur a new wave of regulatory arbitrage, where companies optimize for regions with softer rules. At the same time, emerging markets may look to Europe’s earlier, tougher regulations as a blueprint—or a cautionary tale.

🔭 What’s Next

• The European Commission is expected to publish detailed proposals soon, outlining which AI requirements will be relaxed and over what timeframe.

• Lawmakers in the European Parliament will debate the changes—and civil society groups are preparing to push back.

• Tech companies on both sides of the Atlantic will be watching closely: for some, it's a relief; for others, a missed chance to anchor global AI norms.