Parliament Votes for Business-Friendly AI Act Changes

The European Parliament yesterday approved significant amendments to the EU AI Act through its Digital Omnibus proposal, voting 569 in favour with only 45 against. The changes represent the most substantial revision to the landmark AI legislation since its original passage, introducing both industry-friendly delays and new consumer protections.

Key Regulatory Shifts

The most impactful change delays compliance obligations for high-risk AI systems by over a year, with AI regulatory sandboxes now required only by December 2027. This represents a major victory for industry lobbying efforts, giving companies significantly more time to implement compliance frameworks.

MEPs also introduced a targeted ban on ‘nudifier’ applications—AI systems that generate sexually explicit images of identifiable people without consent. However, systems with effective safety measures preventing such misuse would be exempt from the prohibition.

Transparency requirements for AI-generated content watermarking have been extended until November 2026, though this represents a compromise position shorter than the Commission’s proposed February 2027 deadline.

Industry Context and Controversy

Perhaps the most controversial change excludes many high-risk AI systems already covered by sectoral legislation from the AI Act’s scope entirely. This move, while welcomed by industry, has drawn sharp criticism from civil society groups who argue it weakens consumer protections at a critical moment in AI deployment.

The changes come as Irish and European companies increasingly deploy AI systems across sectors from healthcare to finance, where regulatory clarity has been desperately needed.

Practical Implications for Builders

For AI developers and deployers across Ireland and the EU, these changes provide breathing room but maintain ultimate compliance obligations. Companies developing high-risk AI systems now have additional time to implement governance frameworks, conduct risk assessments, and establish quality management systems.

However, the exemptions for sectoral legislation create new complexity—companies must now navigate whether their systems fall under AI Act provisions or existing sector-specific rules.

What’s Next

Trilogue negotiations between Parliament, Council, and Commission will begin following the March plenary session. The final legislative text could see further modifications, particularly around the controversial sectoral exemptions.

Irish companies should use this extended timeline to begin compliance preparations while monitoring ongoing negotiations that could reshape the final requirements.

Source: European Parliament