regulation

Support for delaying parts of the EU's AI Act is increasing, following a meeting of member states and the European Commission's tech leaders. They propose a “stop the clock” approach due to impending deadlines and unresolved guidelines. Member states differ on how long to postpone implementations, with calls for up to two years for some components. The AI industry endorses this delay, citing the need for additional time for compliance. However, any amendments would require legislative review, and predictions on outcomes are uncertain, highlighting divisions within the Commission.

https://iapp.org/news/a/support-for-ai-act-pause-grows-but-parameters-still-unclear

EU AI Act mandates AI literacy for providers and users of AI systems since February 2025. Compliance expectations are vague, emphasizing staff training to understand AI risks and legal implications. All stakeholders, including contractors and clients, must be educated on AI. Tailored approaches are required, particularly for high-risk systems. No universal standards exist; training is context-specific. Non-compliance may lead to enforcement from August 2026, but exact penalties are unclear. Effective AI literacy is essential for sound AI governance, regardless of direct AI Act applicability.

https://www.dataprotectionreport.com/2025/05/ai-literacy-the-commissions-pointers-on-building-your-programme/

EU AI Act mandates firms to ensure staff and clients are AI literate, training on AI systems required, addressing ethical, legal aspects. Enforcement starts August 2026; records of training suffices.

https://financialregulation.linklaters.com/post/102kbdp/eu-guidance-suggests-firms-may-need-to-train-clients-and-service-providers-on-ai

EU AI Act takes effect August 2024, prohibiting harmful AI practices (e.g., subliminal manipulation, social scoring). Tips for compliance include focusing on prohibited use cases, early screening of new AI projects, and balancing governance with practicality.

https://www.tlt.com/insights-and-events/insight/prohibited-ai—taking-a-practical-approach-to-compliance/

TLDR: EU AI Act, effective August 2024, prohibits harmful AI practices: subliminal manipulation, social scoring, and biometric tracking in public. Compliance requires assessing current AI uses, screening future applications, and maintaining an efficient governance framework. Focus on high-risk, prohibited cases and leverage existing compliance processes to ensure adherence.

https://www.tlt.com/insights-and-events/insight/prohibited-ai—taking-a-practical-approach-to-compliance/

AI washing poses legal risks as companies exaggerate AI capabilities amid vague definitions in the EU's AI Act. Legal clarity is essential but increases scrutiny, with potential penalties for false claims. Companies face liability for misleading assertions to investors and customers. Developing accurate communications and verifying AI claims are crucial to mitigate legal repercussions.

https://www.clydeco.com/en/insights/2025/05/the-fine-print-of-ai-hype-the-legal-risks-of-ai-wa

Developers are braced for uncertainty as the EU AI Act is enacted, acknowledging that evolving compliance strategies will be necessary due to ambiguities in the regulatory landscape. Experts emphasize adapting governance frameworks while recognizing the gradual implementation of regulations. Companies with prior regulatory experience, particularly in data compliance, are better positioned to navigate the Act's requirements, while the finalization of a general-purpose AI Code of Practice remains delayed. The European Commission is exploring simplifications to the Act to ease compliance for businesses.

https://iapp.org/news/a/developers-prepare-for-uncertainty-look-to-prior-regulations-with-ai-act-coming-online

EU must create supportive AI regulations, address digital skills gaps, and ensure AI accessibility for all businesses to enhance competitiveness.

https://www.aboutamazon.eu/ai-and-competitiveness-shaping-europes-digital-future