The Council of the European Union officially reached an agreement on March 13, 2026. It adopted the "Digital Omnibus on AI" to streamline rules regarding artificial intelligence. This policy background stems from challenges to European competitiveness. In November 2024, the "Budapest Declaration" called for simpler AI rules to reduce administrative burdens on businesses. The European Commission subsequently submitted this proposal on November 19, 2025. The goal is to ensure EU digital sovereignty. It also aims to create a more favorable operating environment for companies without lowering protections for fundamental rights. With the Council's consensus, the Presidency will now begin formal negotiations with the European Parliament.
The core of this proposal includes several key amendments to the AI Act. First, the timeline for high-risk AI systems has been delayed by up to 16 months. Rules for "standalone high-risk systems" will now apply on December 2, 2027. Rules for "high-risk systems embedded in products" will apply starting August 2, 2028. Second, the proposal expands the authorization to process sensitive personal data to address algorithmic bias more fairly. Providers and deployers may process specific categories of personal data for bias detection and correction. This is allowed only under conditions of "strict necessity" and with safety safeguards. Additionally, regulatory exemptions have been expanded from small and medium-sized enterprises (SMEs) to include small mid-caps (SMCs). Requirements for technical documentation and quality management systems have also been simplified. Regarding governance, the proposal strengthens the powers of the AI Office. It grants the office exclusive oversight and market surveillance authority over general-purpose AI models and large-scale online platforms.
This proposal focuses on reducing administrative burdens while adding strict social safeguards for technological development. The Council introduced new clauses to prohibit the generation or manipulation of non-consensual intimate imagery (NCII). It also bans the creation of child sexual abuse material (CSAM). To further reduce business costs, "AI Literacy" has changed from a mandatory obligation to an encouraged practice. Governments and the Commission will now lead the effort to guide companies in employee training. The promotion of the "Digital Omnibus" demonstrates the EU's commitment to balancing legal certainty with industrial competitiveness during its pursuit of technological innovation.