Fixing Europe’s Digital Future: Beyond the AI Act Delay

AI Act Delay: A Call for Structural Reform to Enhance Europe’s Industrial Competitiveness

DIGITALEUROPE has issued a critical warning regarding the rush to adopt the AI omnibus, urging the European Parliament and Council to prioritize structural reform. The organization emphasizes that Europe risks entrenching unresolved issues within its most significant digital legislation for years to come. The overarching digital omnibus must also facilitate a meaningful simplification of the Data Act and cybersecurity regulations.

The Need for a Delay on High-Risk Obligations

As negotiations progress, it is essential for the Parliament and Council to request that the Commission separate the necessary delay from substantive reforms. The immediate postponement of high-risk obligations under the AI Act is crucial. Currently, standards are not prepared, and enforcement structures remain incomplete. Businesses are left unable to comply due to these missing elements. However, pushing through only lightly amended texts in a hurry would constitute a historic mistake.

“Europe needs a serious political conversation about whether the AI Act, as currently designed, will strengthen or constrain our economy,” said a DIGITALEUROPE representative. This conversation cannot take place if lawmakers are pressured to expedite the AI omnibus. Rushing may secure a delay but will also freeze unresolved issues for years, particularly at a pivotal moment for Europe’s digital and industrial competitiveness.

Addressing Compliance Burdens Beyond AI

The focus in the current negotiations has shifted predominantly to amendments surrounding the GDPR and ePrivacy. However, the most significant compliance burdens for European industry, stemming from the Data Act and the Cyber Resilience Act, remain largely unaddressed.

Co-legislators must extend their scrutiny beyond the polarized discussions on GDPR and ePrivacy to tackle mandatory data-sharing obligations, fragmented incident reporting timelines, and unrealistic standardization deadlines. These issues significantly impact Europe’s industrial competitiveness.

“Europe cannot claim to simplify while leaving the heaviest compliance machinery intact,” the representative added. “Our industries need workable adjustments now—not years from now, after another review cycle.”

Conclusion

In conclusion, DIGITALEUROPE’s position is clear: adopting the AI omnibus merely to secure a delay will defer meaningful reform to an uncertain future. This decision would send a damaging message to Europe’s manufacturers, health technology providers, energy companies, and engineering firms at a time when crucial investment decisions are being made. The stakes extend beyond AI; they encompass the broader digital landscape that demands immediate attention and reform.

For further details, DIGITALEUROPE has published extensive recommendations on both the Data Act and Cyber Resilience Act, underscoring the urgency for actionable changes.

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