EU Council Proposes Delaying AI Act High-Risk Rules by Up to 16 Months

TL;DR:

• The EU Council has proposed pushing back deadlines for high-risk AI system obligations by up to 16 months — to December 2027 for standalone systems and August 2028 for those embedded in products
• The proposals also extend SME regulatory exemptions to small mid-caps and add new prohibitions on AI-generated non-consensual sexual content
• For UK businesses selling AI into the EU, the delays provide additional compliance breathing room but do not remove the underlying obligations

The EU Council has published proposals to amend the AI Act’s implementation timeline, acknowledging that the standards and frameworks needed for compliance are not yet ready. The current deadline for high-risk AI system obligations — 2 August 2026 — is set to be pushed back significantly under the proposed changes.

What Would Change

The most consequential amendment extends the application dates for high-risk AI rules. Standalone high-risk systems would face a new deadline of 2 December 2027, while high-risk AI embedded in products would have until 2 August 2028. The delays reflect a practical reality: the Commission has not yet published the technical standards that organisations need to demonstrate compliance.

Beyond timeline changes, the proposals include several substantive amendments. Regulatory exemptions currently available to SMEs would extend to small mid-caps, reducing compliance burdens for a wider range of businesses. The package also introduces new prohibitions on using AI to generate non-consensual sexual content and child sexual abuse material — areas where the original Act was considered insufficient.

The AI Office’s supervisory powers would be reinforced, with clearer competences over AI systems built on general-purpose models where a single provider develops both the model and the system. National authorities would retain oversight of AI used in law enforcement, border management, and financial services.

The Broader Context

These amendments form part of a wider EU simplification effort spanning ten “Omnibus” packages across sustainability, agriculture, defence, and digital policy. The European Parliament is expected to report its position ahead of a June vote, with publication of final amendments targeted for July 2026.

Looking Forward

For UK businesses operating in or selling into the EU market, the proposed delays offer welcome additional time to prepare — but the direction of travel remains clear. The AI Act’s extraterritorial reach means UK companies placing AI systems or outputs into the EU will still need to comply. The uncertainty lies in whether these proposals survive trilogue negotiations intact, or undergo further significant revision before becoming law.