EU Council Agrees Negotiating Position on AI Act Streamlining, March 2026

On 13 March 2026, the Council of the European Union adopted its negotiating position (general approach) on a proposal to amend the EU Artificial Intelligence Act (Regulation (EU) 2024/1689) as part of the "Omnibus VII" simplification package. The position is a mandate for the Council presidency to begin inter-institutional negotiations (trialogue) with the European Parliament and the European Commission. It is not a final legislative text; the AI Act itself remains fully operative.

The underlying Commission proposal sought to adjust the timeline for applying rules on high-risk AI systems by up to 16 months, so that those rules enter force once the Commission confirms that the necessary standards and technical tools are available. The Commission also proposed targeted amendments: extending certain regulatory exemptions granted to SMEs to small mid-cap companies (SMCs); expanding the possibility of processing special categories of personal data for bias detection and mitigation; reinforcing the powers of the AI Office; and reducing governance fragmentation across Member States.

The Council mandate retains the thrust of the Commission proposal but adds several distinct modifications. First, it introduces a new prohibition on AI systems that generate non-consensual sexual and intimate content or child sexual abuse material, inserted as a new prohibited practice under Article 5 of the AI Act. Second, it fixes concrete application dates for high-risk rules: 2 December 2027 for stand-alone high-risk AI systems and 2 August 2028 for high-risk AI systems embedded in products — replacing the Commission's sliding trigger tied to standards availability. Third, the mandate reinstates the obligation for providers to register AI systems in the EU database even where those providers consider their systems exempt from high-risk classification, and reinstates the "strict necessity" standard for processing special categories of personal data for bias detection and correction. Fourth, it postpones the deadline for national competent authorities to establish AI regulatory sandboxes to 2 December 2027. Fifth, the text clarifies the supervisory competence of the AI Office over general-purpose AI model-based systems where the model and that system share the same provider, while listing domains in which national authorities remain competent: law enforcement, border management, judicial authorities, and financial institutions. Sixth, the mandate adds an obligation for the Commission to issue guidance assisting operators of high-risk AI systems covered by sectoral harmonisation legislation in complying with the AI Act while minimising compliance burden.

AI developers, deployers, and importers of high-risk AI systems currently preparing for the August 2026 application date under the existing AI Act should treat the proposed revised dates as a likely planning baseline, subject to formal confirmation after trialogue. The reinstated registration obligation means providers cannot rely on a self-assessed exemption from high-risk classification to avoid EU database registration. The new Article 5 prohibition on AI-generated non-consensual intimate content applies to providers of general-purpose AI models and any deployer who deploys such systems in the EU market.

No final Digital Omnibus text on AI has been agreed. The European Parliament is expected to set its own position; trialogue negotiations will follow. Businesses should continue monitoring the progression of the full Omnibus VII package and note that the proposed revised high-risk application dates and reinstated safeguards remain subject to change in trialogue.

Source: Council of the European Union, Press Release, "Council agrees position to streamline rules on Artificial Intelligence," 13 March 2026, https://www.consilium.europa.eu/en/press/press-releases/2026/03/13/council-agrees-position-to-streamline-rules-on-artificial-intelligence/ (confirmed 18 March 2026).

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.