EU Refuses to Delay Landmark AI Act Despite Industry Demands
News Mania Desk / Piyal Chatterjee / 5th July 2025

The European Commission has firmly dismissed requests from major technology companies and industry groups to postpone the rollout of the EU’s new Artificial Intelligence Act. Speaking on Friday, a Commission spokesperson confirmed that there will be no suspension, grace period, or pause in implementing the regulations. This decision follows weeks of pressure from influential firms—including Google’s parent company Alphabet, Meta, Dutch chipmaker ASML, and French AI startup Mistral—who argued that the rules could stifle innovation and create excessive compliance costs.
Despite these concerns, the Commission stressed that the AI Act’s timeline remains unchanged. The phased schedule includes key deadlines: by February 2025, initial obligations will take effect; August 2025 will see new requirements introduced for general-purpose AI models; and by August 2026, regulations will apply to high-risk AI systems. The Act itself, adopted earlier this year, is the world’s first major attempt to systematically regulate artificial intelligence, aiming to balance innovation with user safety and ethical standards.
Central to the industry’s frustration is the delayed publication of the Code of Practice—a non-binding document meant to guide AI developers and ensure they understand and follow the law’s technical details. Initially expected in May 2025, this code now appears unlikely to be ready until late 2025, which companies argue leaves them in regulatory uncertainty.
While the Commission has proposed additional measures to support smaller companies, including plans to simplify broader digital regulation later this year, officials remain firm that the AI Act itself will not be delayed. The EU’s approach is built on a risk-based framework: outright banning certain AI applications like social scoring, introducing strict controls on high-risk systems used in sensitive areas such as employment or healthcare, and lighter measures for lower-risk applications.
Industry leaders, including CEOs from more than 45 European firms, have argued that without clearer guidance, the law could harm Europe’s global competitiveness, limit AI investment, and pose an especially heavy burden on startups and smaller businesses. Nonetheless, EU officials maintain that ensuring trustworthy and ethical AI outweighs the risks of postponement.



