The tentative deal was reached after nine hours of negotiations and now awaits formal approval by EU governments and the European Parliament in the coming months.

Under the agreement, EU governments and lawmakers agreed to postpone rules governing high-risk AI systems including systems related to biometrics, critical infrastructure, and law enforcement until December 2, 2027, instead of the previously planned August 2 deadline this year. The agreement also exempts machinery from the AI Act, as the sector is already regulated under separate industry-specific legislation, a concession made in response to pressure from businesses.

The revisions to the AI Act are part of the European Commission’s broader effort to simplify a range of new digital regulations. The simplification drive follows complaints from businesses that overlapping regulations and cumbersome administrative procedures are undermining their competitiveness against rivals from the United States and Asia.