Almost 50 digital industry organisations across Europe, including Technology Ireland (IBEC), have come together to call on the European Parliament and the European Council to force a postponement of the upcoming EU AI Act application deadlines.

In a joint statement, the organisations call on the European Parliament and the Council “to request that the European Commission (EC) table a targeted, standalone proposal to postpone the upcoming AI Act application deadlines, and adopt that delay swiftly, as was done for the sustainability omnibus”.

The “fast-paced” negotiations on the AI omnibus risk becoming a missed opportunity to address the challenges facing AI technology developers in Europe, and will de-incentivise progress, the letter states.

Barriers

The EC’s own analysis found that the AI Act could see an SME developing a high-risk AI system facing up to €319,000 in initial compliance costs, plus up to €150,000 per year thereafter. Additional estimates suggest the initial costs could amount to €600,000 when including certification and staff costs, translating into 30-40 per cent profit erosion for SMEs.

“We cannot afford such barriers at a time when strengthening Europe’s industrial capacity is more important than ever,” it said.

The organisations highlighted the duplication of regulations, saying that companies will now be “caught in a double or even triple layer of regulation, and classified as high-risk under the AI Act despite existing sector-specific oversight.”

Regulatory frameworks

The group is calling for an amendment to the Act allowing sectors already regulated under existing product safety frameworks to be removed from Section A to Section B of Annex I on the new Act, “so that AI-related requirements can be addressed through the appropriate sectoral regulatory frameworks and authorities”.

“Overlapping, and potentially conflicting, documentation and conformity assessments risk delaying certification and slowing the deployment of innovative products.”

Earlier this month, the European Council agreed its position on the proposed legislation. The Council mandated a fixed timeline for the delayed application of high-risk rules. The new application dates would be 2 December 2027 for stand-alone high-risk AI systems and 2 August 2028 for high-risk AI systems embedded in products.

Furthermore, the Council mandate reinstates the obligation for providers to register AI systems in the EU database for high-risk systems, where they consider their systems to be exempted from classification as high-risk. It also reinstates the standard of strict necessity for the processing of special categories of personal data for the purpose of ensuring bias detection and correction.

Deadline

In addition to these, the text postpones the deadline for the establishment of AI regulatory sandboxes by competent authorities at national level until 2 December 2027. It also clarifies the competencies of the AI Office for the supervision of AI systems based on general-purpose AI models where the model and system are developed by the same provider by listing exceptions where national authorities remain competent, including law enforcement, border management, judicial authorities and financial institutions.

The Council mandate also adds a new obligation for the Commission to provide guidance to assist economic operators of high-risk AI systems covered by sectoral harmonisation legislation in complying with the high-risk requirements of the AI act in a manner that minimises compliance burden.

Following the Council’s mandate, the Council Presidency, which is currently held by Cyprus will start negotiations with the European Parliament on the details of the AI omnibus. 

Digital sovereignty

Commenting on the legislation, Marilena Raouna, Deputy Minister for European Affairs, Republic of Cyprus, said: “Streamlining the AI rules is essential for ensuring the EU’s digital sovereignty. As presidency, we worked on this proposal with urgency, reaching a swift agreement to facilitate the timely application of the AI act. The proposal will bring greater legal certainty, make the rules more proportionate and ensure more harmonised implementation across member states. We are ready to work with our co-legislators in our common efforts to support our companies, facilitate innovation and build a more competitive Europe.”

Ireland will take over the Presidency of the Council of the European Union on 1 July 2026.