EU Commission Rejects Calls to Pause AI Act Amid Industry Pressure

The European Commission has firmly dismissed calls to delay the implementation of the landmark Artificial Intelligence Act, despite mounting pressure from industry and political quarters.

In July, several leading European company CEOs requested a “two-year clock-stop” for the legislation, citing concerns over incomplete codes of practice and uneven national supervision. Former U.S. President Donald Trump has also weighed in, threatening tariffs on countries perceived as targeting American tech companies.

Dr. Ian Gauci, newly appointed head of AI at Malta’s Financial Services Authority’s Fintech Strategy Group, noted, “The push to pause the AI Act is coming from multiple fronts. For the time being, the AI deployed in Europe is largely based on American technology, so Europe is more a beneficiary here.”

Some politicians, including former Italian Prime Minister Mario Draghi, have called for more targeted pauses. “Draghi’s comments focused on high-risk AI systems in critical infrastructure and health, not the Act as a whole,” Gauci said.

The Commission has reiterated that no halt is forthcoming. Instead, it is preparing a Digital Omnibus package expected in December, aimed at reducing administrative burdens by 25–35%. While this will not rewrite the AI Act, officials hope it will simplify overlaps and streamline compliance.

“Beyond the headlines, the pressure reflects both practical concerns, such as delayed guidance and fragmented oversight, and political considerations, including industry costs and U.S. threats,” added Dr Gauci.

“Brussels is holding firm: the Act will proceed as scheduled, with simplification coming via the Omnibus. There is no moratorium yet,” he concluded.

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