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The beginning of August reflects new stages in the gradual application of the EU AI legislation, originated in 2024. In mid-June 2026, the European Parliament and the Council of the EU formally approved targeted amendments to the EU AI Act (known as the Digital Omnibus on AI). These changes provide timeline relief for high-risk AI obligations, introduce new prohibitions on harmful AI-generated content and streamline compliance burdens, etc.
Background
In mid-June 2026, the European Parliament approved agreed amendments to the EU Artificial Intelligence Act as part of the wider Digital Omnibus on AI package. The measure forms part of the EU’s broader effort to simplify parts of its digital regulatory framework while maintaining the core architecture of the AI Act. The AI Act (Regulation 2024/1689 laying down harmonised rules on artificial intelligence) has been the first-ever comprehensive legal framework on AI worldwide.
More in: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
The mentioned amendments follow a political agreement reached between the EU co-legislators on 7 May 2026 and were intended to address a number of implementation issues that had emerged since the AI Act entered into force, including the availability of harmonised standards, the designation of competent authorities and the practical readiness of businesses to comply with certain obligations. Although the amendments provide additional time in a number of important areas, they should not be viewed as a pause on AI Act compliance. Rather, they provide organisations with a clearer implementation runway and an opportunity to put more robust AI governance arrangements in place before the next major compliance milestones.
More in: https://digital-strategy.ec.europa.eu/en/news/commission-starts-enforcing-ai-act-rules-and-new-transparency-requirements-2-august
The amendments must still complete the remaining formal stages before entering into force, including Council approval and legal-linguistic finalisation. It is intended that the process will be completed in time to provide certainty before the next major AI Act application dates.
On February 2, 2025 the European Union’s Artificial Intelligence Act (the “EU AI Act”) regime started to be applied, though with some reservations. However, two big milestones must be mentioned: a) a ban on “Unacceptable Risk” AI systems, and b) the requirement to be “AI literate”.
Additional reference on the “AI literacy requirement” in: https://byrnewallaceshields.com/news-and-recent-work/publications/the-eu-ai-act-the-first-big-milestone-time-to-get-ai-literate.html
Enforceable provisions
Thus, on August 2, 2026, the following provisions of the EU AI Act are becoming enforceable, and non-compliance would lead to fines:
1. Transparency of AI systems intended to interact directly with natural persons (article 50 § 1):
“Providers shall ensure that AI systems intended to interact directly with natural persons are designed and developed in such a way that the natural persons concerned are informed that they are interacting with an AI system, unless this is obvious from the point of view of a natural person who is reasonably well-informed, observant and circumspect, taking into account the circumstances and the context of use. This obligation shall not apply to AI systems authorised by law to detect, prevent, investigate or prosecute criminal offences, subject to appropriate safeguards for the rights and freedoms of third parties, unless those systems are available for the public to report a criminal offence.”
2. Machine-readable watermarking of AI-generated content (article 50 § 2): “the AI systems already on the market before August 2 will benefit from a grace period, according to the Digital Omnibus on AI, and their providers will have until December 2 to comply”. “Providers of AI systems, including general-purpose AI systems, generating synthetic audio, image, video or text content, shall ensure that the outputs of the AI system are marked in a machine-readable format and detectable as artificially generated or manipulated. Providers shall ensure their technical solutions are effective, interoperable, robust and reliable as far as this is technically feasible, taking into account the specificities and limitations of various types of content, the costs of implementation and the generally acknowledged state of the art, as may be reflected in relevant technical standards. This obligation shall not apply to the extent the AI systems perform an assistive function for standard editing or do not substantially alter the input data provided by the deployer or the semantics thereof, or were authorised by law to detect, prevent, investigate or prosecute criminal offences.”
Note. The AI Omnibus, as part of the digital omnibus package was proposed in November 2025; it delivers a targeted simplification of the AI rulebook while preserving strong safeguards for people’s safety and fundamental rights. Besides, it supports innovation and competitiveness by easing compliance for smaller businesses, extending timelines, expanding testing and experimentation opportunities, and providing greater legal clarity for companies developing and deploying AI in Europe.
More on AI Omnibus in: https://digital-strategy.ec.europa.eu/en/news/ai-omnibus-enters-force
3. Biometric categorization system transparency (article 50 § 3): “Deployers of an emotion recognition system or a biometric categorization system shall inform the natural persons exposed thereto of the operation of the system, and shall process the personal data in accordance with Regulations (EU) 2016/679 and (EU) 2018/1725 and Directive (EU) 2016/680, as applicable. This obligation shall not apply to AI systems used for biometric categorization and emotion recognition, which are permitted by law to detect, prevent or investigate criminal offences, subject to appropriate safeguards for the rights and freedoms of third parties, and in accordance with Union law.”
4. Deepfake disclosure (article 50 § 4): “Deployers of an AI system that generates or manipulates image, audio or video content constituting a deep fake, shall disclose that the content has been artificially generated or manipulated. This obligation shall not apply where the use is authorised by law to detect, prevent, investigate or prosecute criminal offence. Where the content forms part of an evidently artistic, creative, satirical, fictional or analogous work or program, the transparency obligations set out in this paragraph are limited to disclosure of the existence of such generated or manipulated content in an appropriate manner that does not hamper the display or enjoyment of the work.”
Source and citations from: https://byrnewallaceshields.com/news-and-recent-work/publications/ai-act-amdendments-approved-what-the-revised-timelines-mean-for-businesses.html
Postponed AI Law’s obligations
Following the approval of the Digital Omnibus on AI, some of the AI Act obligations originally scheduled for August 2 were postponed, including the rules for high-risk AI systems. At the end of June 2026, the Council of the European Union approved the amendments to the EU AI Act, including the postponement of the high-risk deadlines.
There were the following key changes:
= New application dates: – 2 December 2027 for high-risk AI systems listed on Annex III; – August 2, 2028 for high-risk AI systems listed on Annex I; – August 2, 2027 is the new deadline for the establishment of AI regulatory sandboxes by competent authorities at the national level; – December 2, 2026 is when the grace period ends for providers to implement transparency solutions for AI-generated content.
= New prohibited AI practice: – The generation of non-consensual sexual and intimate content or child sexual abuse material (CSAM) will be prohibited. – AI systems that generate nude images of real people or edit clothes out in existing photos to reveal intimate parts would be banned starting from the end of 2026.
= Clarification of the competences of the AI Office: – The new text clarifies the competences of the AI Office for the supervision of AI systems based on general-purpose AI models, where both the model and the system are developed by the same provider. – It lists the exceptions where national authorities remain competent, including law enforcement, border management, judicial authorities and financial institutions. The AI Office is currently preparing a set of guidelines to provide clear and practical instructions on how to apply the AI Act, alongside other relevant EU legislation.
More on the AI Office in: https://digital-strategy.ec.europa.eu/en/policies/ai-office
= Interplay between sectoral rules and the AI Act: – For high-risk AI systems covered in Annex I (those already regulated by sectoral laws, such as medical devices, toys, lifts, watercraft, etc.), the new text limits the AI Act’s application in situations where sectoral laws already impose AI-specific requirements similar to those of the AI Act.
= Minimizing compliance burden: – The new text also adds an obligation for the European Commission to provide guidance to assist economic operators of high-risk AI systems covered by Annex I (those already covered by sectoral law) in complying with the high-risk requirements of the AI Act in a manner that minimizes the compliance burden.
Source and citations from: Jarovsky L. Changes to the AI Act Approved by the Council of the EU. June 29, 2026. In: https://www.luizasnewsletter.com/p/changes-to-the-ai-act-approved-by
Note. The legislative act making these and other changes official valid, has to be published in the Official Journal of the European Union; More on this in our article on the EU Law Tracker.