AI Regulation: EU Parliament and Council agree on relaxed obligations for industry

**EU Agrees on Relaxed AI Regulations, Focuses on Industrial Applications and Deepfake Ban** Following initial negotiation breakdowns, the European Parliament and Council have reached a provisional agreement on the AI Act, introducing significant adjustments to industrial compliance requirements. This compromise includes a notable ban on AI applications capable of generating sexualized deepfakes. The agreement, brokered by the Commission, aims to balance innovation with robust ethical safeguards, particularly concerning the deployment of high-risk AI systems. The revised regulation introduces a deferred timeline for central obligations concerning high-risk AI, pushing compliance deadlines to late 2027 and 2028. A key element of the compromise is the limitation of the AI Act's scope where existing sectoral regulations already impose comparable safety and AI-specific rules, easing the burden on industries with established compliance frameworks. This adjustment aims to streamline the application of the AI Act and foster technological development without compromising fundamental safety standards. A significant addition to the AI Act is the explicit prohibition of AI tools that can create sexualized deepfakes, including those depicting child sexual abuse or non-consensual intimate imagery. This measure addresses growing concerns over digital exploitation and aims to protect individuals from harmful AI-generated content. The EU's commitment to regulating such applications underscores its dedication to a safer digital environment for its citizens.