The EU is considering pausing parts of its landmark AI Act following months of pressure from US hyperscalers, the Trump administration, and European tech groups, the Financial Times reported. The most robust AI legislation globally faced blowback across industries from banking to energy over its complex framework and potential to stifle innovation. Nearly 60% of small European tech businesses said they faced delays due to regulation, with less than one third saying they felt confident in complying with new rules, according to a survey by trade group The App Association.
If carried through, the changes would be a major win for Big Tech and the US, which has pushed for minimal restrictions to promote development and maintain a lead over China. It could also spur growth for European tech companies that have faced additional regulatory hurdles, which coupled with government investments in research programs, could cement the EU’s role as the third largest global player.