The European Union's AI Act, the world's first comprehensive regulatory framework for artificial intelligence, is facing mounting implementation challenges as key provisions are set to take effect in August 2025.
Industry leaders and tech companies are sounding alarm bells about the readiness of both businesses and regulators. In late June, the Computer & Communications Industry Association (CCIA) Europe, whose members include tech giants like Alphabet, Meta, and Apple, formally urged EU leaders to pause the implementation timeline.
"Europe cannot lead on AI with one foot on the brake," said Daniel Friedlaender, CCIA Europe's Senior Vice President. "With critical parts of the AI Act still missing just weeks before rules kick in, we need a pause to get the Act right, or risk stalling innovation altogether."
At issue is the Code of Practice for General-Purpose AI models, which was originally expected by May 2025 but remains incomplete. This delay creates significant uncertainty for companies trying to prepare for compliance. The Code is meant to serve as a central tool for providers to demonstrate compliance with the AI Act's requirements for general-purpose AI systems, which include large language models and other advanced AI technologies.
The EU AI Act has a staggered implementation timeline, with certain provisions already in effect since February 2025, including prohibitions on AI systems deemed to pose "unacceptable risks" such as social scoring and manipulative AI. The rules for general-purpose AI models are scheduled to take effect on August 2, 2025, with full implementation of the Act by August 2026.
Some political leaders, including Swedish Prime Minister Ulf Kristersson, have called the AI rules "confusing" and joined the call for a pause. A group of 45 European companies published an open letter requesting a two-year "clock-stop" on the AI Act before key obligations enter into force.
Despite these concerns, the European Commission has not formally announced any plans to delay implementation. A Commission spokesperson reiterated that the rules for general-purpose AI models will take effect on August 2 as scheduled, though enforcement powers for those rules won't begin until August 2026.
The controversy highlights the tension between the EU's ambition to lead global AI regulation and concerns that overly restrictive or hastily implemented rules could stifle innovation in a rapidly evolving field that could potentially contribute €3.4 trillion to the EU economy by 2030.