The European Commission has unveiled its “Digital Omnibus,” a regulatory package designed to streamline the EU’s existing digital legislation. A key component of this plan involves delaying the full implementation of rules within the AI Act, particularly those concerning “high-risk” AI systems. The move, announced today, pushes back the deadline for these provisions from August 2026 to December 2027, impacting businesses and organizations deploying AI in critical areas.
This delay means that AI models used in sensitive applications – such as evaluating job applications, assessing student exams, or determining creditworthiness – will have more time to comply with the stringent requirements of the AI Act. The Commission cites a lack of preparedness among member states and the complexity of the new rules as justification for the postponement. This decision has sparked debate, with concerns raised about potential deregulation and its impact on consumer rights.
Why the Delay in AI Act Implementation?
The Commission attributes the delay to the slow pace of implementation by EU member states. Many countries missed the August 2025 deadline to designate the competent authorities needed to enforce the AI Act. Without these national structures in place, independent Conformity Assessment Bodies cannot be officially recognized, hindering the full functionality of the regulatory system, according to Hanane Taidi, Director General of TIC Council.
Additionally, industry groups like the CCIA, representing tech giants such as Amazon, Apple, and Google, have welcomed the delay but are calling for further adjustments. They argue the Omnibus misses opportunities to refine the criteria for identifying “systemic risk” AI models and address concerns about the extraterritorial application of copyright provisions.
Concerns Over Deregulation
However, the delay has drawn criticism from consumer protection advocates. Peter Norwood, Senior Research and advocacy officer at Finance Watch, characterized the move as a “deregulate to accelerate” strategy, warning that consumers could bear the brunt of potential biases in AI-driven financial decisions. He specifically noted the risk of individuals being unfairly denied loans or facing higher insurance premiums based on flawed AI assessments.
Agustín Reyna, Director General of the European Consumer Organisation BEUC, echoed these concerns, stating the proposal appears to prioritize deregulation for Big Tech over strengthening consumer protections. Reyna emphasized the need to focus on simplifying compliance for all European companies, not just reducing burdens for large technology firms.
The postponement also affects the use of data in AI systems. Under the revised timeline, AI models will be able to utilize previously restricted data when making decisions related to access to essential financial services, raising further questions about fairness and transparency.
The Road Ahead for the Digital Omnibus
The Digital Omnibus now faces a potentially challenging path to adoption. The proposed changes require modifications to the General Data Protection Regulation (GDPR), a move that has already encountered opposition from Members of the European Parliament (MEPs) across the political spectrum. Francine Cunningham, Regulatory and Public Affairs Director at Bird & Bird, anticipates resistance due to the bypassing of standard impact assessments and consultations.
Furthermore, some MEPs may be reluctant to revisit legislation that was recently debated and adopted. Despite these hurdles, the Commission maintains that the rules must be finalized before the original August 2026 deadline for implementing the “high-risk” AI provisions. The debate highlights the ongoing tension between fostering innovation in artificial intelligence and safeguarding fundamental rights and consumer protection within the European Union.
The coming months will be crucial as the European Parliament and Council review the Digital Omnibus. Stakeholders will be closely watching for any further adjustments to the AI Act and GDPR, and the ultimate impact on the development and deployment of AI technologies across Europe. Businesses should continue to monitor the situation and prepare for compliance, even with the extended timeline, to ensure responsible and ethical AI practices.
