EU AI Act Reform Negotiations Stall as Compliance Deadline Approaches

EU lawmakers and member states failed to reach agreement on reforms to the AI Act after 12 hours of negotiations ending early on 29 April, with talks breaking down around 2 am over proposals to weaken rules for manufacturing and medical device AI systems. The European Parliament pushed to move sectoral legislation from Annex I Section A to Section B, but the Council rejected this change backed by German Chancellor Friedrich Merz, who argued many industrial AI products already face sectoral regulations. Green Party MEPs criticized the delay as a political coup benefiting Big Tech, while industry group Digital Europe warned unnecessary compliance costs could reach 31 billion euros. The stalemate comes as high-risk AI systems face an original compliance deadline of 2 August 2026, with negotiations set to resume in two weeks under Cyprus's EU Council presidency.

Breakdown of EU AI Act Reform Negotiations

• ▪High-risk AI systems under the EU AI Act's Annex III face an original compliance deadline of 2 August 2026
• ▪Negotiations between the European Parliament and the Council of the European Union on EU AI Act reforms began on 28 April and concluded in the early morning hours of 29 April after 12 hours
• ▪The European Parliament and the Council of the European Union were unable to reach a common negotiating position on potential reforms to the EU's AI Act
• ▪The European Parliament and the Council of the European Union decided to resume EU AI Act reform talks in May after failing to reach agreement
• ▪The European Commission introduced the Digital Omnibus on AI proposal on 19 November 2025
• ▪EU lawmakers and member states previously aligned on postponing the compliance date for AI embedded in regulated products under the AI Act's Annex I to 2 August 2028
• ▪EU lawmakers and member states previously aligned on postponing the compliance date for high-risk AI systems classified under the AI Act's Annex III to 2 December 2027

Dispute Over High-Risk AI Systems and Sectoral Regulations

• ▪A key issue under the European Commission's Digital Omnibus on AI is the delayed application of high-risk AI rules
• ▪German Chancellor Friedrich Merz backed a push to ease restrictions on industrial AI
• ▪The Council of the European Union pushed back against the European Parliament's proposal to move sectoral legislation from Annex I Section A to Section B
• ▪EU AI Act reform talks broke down around 2 am over the European Parliament's push to move sectoral legislation from Annex I Section A to Section B

Political Divisions and Stakeholder Reactions

• ▪Members of the Green Party are criticizing an alliance between the centrist European People's Party with the right in delaying the EU AI Act reform negotiations
• ▪Arba Kokalari is the European People's Party co-rapporteur on the EU AI Act reforms
• ▪Laura Caroli served as policy advisor to Brando Benifei during the original EU AI Act negotiations
• ▪Italian MEP Brando Benifei is the European Parliament's lead negotiator on AI
• ▪Dutch MEP Kim van Sparrentak stated that Big Tech is probably celebrating while European companies that care about safety face regulatory chaos
• ▪Cecilia Bonefeld-Dahl is the Director General of Digital Europe
• ▪Digital Europe supports the European Parliament and Germany's push for meaningful simplification for Europe's industrial sectors regarding the EU AI Act

Perspective of Green Party MEPs and AI Act defenders

• ▪An alliance between the centrist European People's Party and right-wing parties is responsible for delaying EU AI Act reform negotiations according to Green Party members

Perspective of Digital Europe industry group

• ▪Unnecessary compliance costs from the EU AI Act could reach up to 31 billion euros according to Digital Europe estimates