EU Agrees to Delay and Simplify Parts of the AI Act Under Digital Omnibus Deal

EU legislators reached a political agreement on May 7, 2026 to amend the EU AI Act, delaying high-risk AI obligations from August 2026 to December 2027 (and to August 2028 for product-embedded AI), while maintaining existing prohibitions and GPAI governance obligations. Industrial AI embedded in machinery will be subject to EU machinery rules rather than the AI Act's high-risk regime. The definition of 'safety component' was narrowed so AI systems whose failure doesn't create health/safety risks are excluded. The deal is part of the EU's broader Digital Omnibus initiative to simplify digital regulations. Formal legal adoption is expected before August 2, 2026.