Regulatory  ·  2026-07-01

EU Council Formally Adopts AI Act Omnibus Simplification Regulation (Digital Omnibus on AI)

RegulatoryHigh impactEuropean Union
On 29 June 2026, the Council of the European Union gave its final formal adoption to a regulation amending the EU AI Act under the 'Digital Omnibus' legislative package. The regulation: (1) postpones application of high-risk AI obligations to 2 December 2027 for stand-alone high-risk systems and 2 August 2028 for high-risk AI embedded in regulated products (medical devices, toys, lifts, watercraft etc.); (2) adds new prohibitions on AI-generated non-consensual sexual/intimate content and CSAM, effective December 2026; (3) sets 2 December 2026 as the deadline for transparency tools covering AI-generated content (shortened grace period from 6 to 3 months); (4) postpones national AI regulatory sandbox establishment to 2 August 2027; (5) narrows the definition of 'safety component' to reduce scope of high-risk obligations; (6) creates a mechanism to resolve overlaps with sectoral legislation (medical devices, machinery etc.) via implementing acts; (7) clarifies the EU AI Office's supervisory competence over general-purpose AI providers. The regulation enters into force on the third day after publication in the Official Journal.
This is the most significant amendment to the EU AI Act since its entry into force. It resets all compliance calendars for the largest category of regulated AI systems. Any AI provider or deployer targeting the EU market — particularly in healthcare, manufacturing, transport, financial services, employment and education — must recalibrate their implementation roadmaps. The new CSAM and deepfake prohibitions are among the first binding EU-level bans on specific generative AI outputs and take effect by December 2026, well ahead of the high-risk obligations.
Immediately revise compliance roadmaps: high-risk obligations now due December 2027 (standalone) or August 2028 (embedded). Generative AI providers must implement CSAM/intimate-image prohibitions and AI-content transparency tools by 2 December 2026. Review whether sectoral legislation overlap mechanisms apply to your product. Monitor Official Journal publication date (regulation enters into force on day 3 after publication).
Sources
Council of the EU Press Release — AI: Council gives final green light to simplify and streamline rules (29 June 2026)EUbusiness.com — Final green light for simpler, streamlined EU rules on artificial intelligenceEUToday — EU AI Simplification Vote Tests Brussels' Promise to Cut Red Tape Without Weakening OversightCyprus Presidency — Council gives final green light to simplify and streamline rules
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