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EU Considers Pausing Parts of Landmark AI Act Amid Pressure from U.S. and Big Tech

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The European Commission is considering pausing parts of its landmark Artificial Intelligence Act, following growing pressure from U.S. officials and major tech companies such as Meta and Alphabet, the Financial Times reported on Friday.

According to the report, the move comes after months of lobbying from Silicon Valley giants and warnings from the Trump administration that strict EU regulations could strain transatlantic trade relations.

A senior EU official told the FT that Brussels has been “engaging” with Washington on potential adjustments to the AI Act and related digital regulations as part of a broader simplification effort, which is expected to be adopted on November 19.

The AI Act, which became law in August 2024, is the world’s first comprehensive framework to regulate artificial intelligence technologies. It categorizes AI systems by risk level — from minimal to unacceptable — and imposes restrictions on areas like facial recognition, biometric surveillance, and generative AI transparency.

While a European Commission spokesperson had previously dismissed calls for delays, officials are now reportedly weighing temporary pauses for specific provisions, particularly those affecting companies developing large AI models.

An EU spokesperson told the FT that “various options” are being discussed but emphasized that the bloc remains “fully behind the AI Act and its objectives.”

The proposal reflects Europe’s balancing act between maintaining AI safety and innovation leadership while addressing geopolitical and trade pressures from the United States and industry stakeholders.

EU Seeks Tech Investment Review to Guard Economic Security

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The European Commission has called on the 27 EU member states to conduct a comprehensive 15-month risk assessment of outbound investments in key technologies, including semiconductors, artificial intelligence (AI), and quantum technologies. This move is part of a broader effort to safeguard the EU’s economic security and prevent the transfer of critical technologies to potentially hostile foreign entities.

Overview of the Risk Assessment Request

The European Commission has requested that EU members review their companies’ investments in non-EU countries dating back to January 2021. The review should provide an interim progress report by July 2025 and a final assessment by June 2026. The aim is to identify any potential risks associated with technology transfers that could be exploited by rival states or military entities, especially in light of recent global security challenges.

Background and Rationale

This initiative is part of the EU’s ongoing efforts to bolster economic security, which have gained importance in response to multiple global crises, such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and rising cyberattacks. The EU is particularly focused on technologies that could be leveraged for military or intelligence purposes by adversarial nations like China, which has raised concerns over technology leakage in the past.

The EU’s strategy, which was first laid out a year ago, includes more stringent oversight of foreign investments and exports, as well as enhanced controls on technology outflows. This is seen as a critical measure in ensuring that European companies do not inadvertently facilitate the advancement of hostile powers through uncontrolled technology transfers.

Potential for Further Action

The review will provide valuable insights into the scale of risks posed by current investment patterns and help the EU determine whether additional regulatory measures are necessary at either the national or EU-wide level. This could lead to more specific restrictions or guidelines governing investments in high-tech sectors that are deemed vital for the EU’s strategic interests.