In a nutshell: The EU AI Act is being reformed to reduce bureaucracy and ease the burden on small and medium-sized enterprises. Most provisions will not be fundamentally changed, but rather their applicability postponed. Compliance obligations are to focus more strongly on large enterprises in the future.
The EU AI Act is already being revised before many of its provisions take effect. The planned reform aims to reduce bureaucracy and particularly ease the burden on small and medium-sized enterprises. We explain the planned changes, their potential impact on businesses, and why caution is warranted regarding new timelines.
The Digital Omnibus Package IV, part of a series of European Commission changes aimed at reducing bureaucracy, also includes a reform of the AI Act. This is unusual since the amendment is taking place before almost all existing provisions become effective – without court decisions or practical experience in implementation.
The Commission and several Member States believe that economic competitiveness in the AI sector can only be achieved if the regulatory brake is applied later. During the additional eighteen months without regulation, companies are to emerge or grow that can compete with the investment-intensive US tech giants.
Most provisions of the AI Act will not be fundamentally changed, but rather their applicability will be postponed. Small and medium-sized enterprises should not be hindered in their growth by compliance requirements.
The planned changes include an extension of certain provisions to SME-group companies and small mid-market firms (fewer than 750 employees and annual revenue not exceeding EUR 150 million). Extensive compliance obligations are to apply only to large enterprises. Simplifications of technical documentation and quality management systems are to be explicitly extended to small mid-market firms. The Commission will issue guidelines for simplified quality management systems.
Administrative penalties are also to take SMEs and mid-market firms into account. For these companies, penalties are no longer to be measured according to the highest amount.
Source: www.activemind.legal