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Hitting the pause button. Voices calling for a pause in the implementation of the EU Artificial Intelligence Act grew louder this past month. In early June, European Commission Executive Vice-President Henna Virkkunen noted the option was on the table, saying the EU "should not rule out postponing some parts of the AI Act" if standards and guidelines were not ready in time. This week, Virkkunen clarified a decision would be made by late August, turning rumors into real prospects.
The AI Act entered into force a year ago with a phased implementation, most of its requirements becoming applicable by 2 Aug. 2026. Halfway through this transition period, a lot is still needed to get EU-harmonized standards and guidelines ready, meaning operators in scope will have at best one year to get clarity on what good looks like under the AI Act, and to make it happen internally and across their supply chains as needed.
Shorter term, a 2 Aug. deadline is also coming up quickly for obligations to go into effect. New obligations will apply to providers of general-purpose AI models, member states must appoint their competent authorities, and the Commission should conduct an annual review of the list of prohibited AI.
Industry, civil society, government and elected officials are divided on what to think of the potential pause. For some, a delay is necessary to provide legal certainty and clarity on rules for proper implementation. The European technology industry even argues the same rationale should be extended to the Data Act.
"New data-sharing obligations kick in this September, with unclear rules and high risks for Europe's data economy. A one-year delay is essential," Director General of DIGITALEUROPE Cecilia Bonefeld-Dahl said on LinkedIn.
For others, pausing now could lead to politicizing what should remain a technical process, at a time when many organizations are already building their AI governance programs because that is what their business requires.
The dilemma around pausing AI Act implementation happens at a complicated time for the European Commission.
First, the Commission must navigate optics and political atmospherics. When adopted, then-commissioner Thierry Breton dubbed the act as "historic," seeing it as much more than a rulebook and as a launchpad for EU startups and researchers to lead the global AI race. Which begs the question: What might be the impact of Europe's AI performance? Would it slow down, fare equally well, or even improve?
Let's not lose sight of the fact that the AI Act is only a portion of Europe's broader AI strategy, which cuts across computing power with a newly adopted Quantum Europe Strategy, capacity building with AI factories, skills and talent, data rules updates, and initiatives to accelerate AI adoption — much of it folded under the AI Continent Action Plan.
The turbulent trans-Atlantic relationship also means Europe has a tough balancing act. It is leading Europe to stand even stronger on its values, defending its digital rulebook as non-negotiable as a trade war looms, while pursuing a competitiveness and simplification agenda fully recognizing the rulebook is complicated, and that some pragmatism is needed when it comes to its impact in practice on European businesses.
Amid all this, European Commission President Ursula von der Leyen is facing a no-confidence vote before European Parliament next week, following months of mounting frictions. The motion is unlikely to be adopted, but it is indicative of the fragility of her personal situation and shows negotiations with parliamentarians to roll-out the Commission's agenda may be very challenging at times.
It is in this context that the rotating Presidency of the Council of the European Union went from Poland to Denmark. In a short video address, Danish Prime Minister Mette Frederiksen expressed that "Europe is at a defining moment in time," putting the focus on her presidency squarely on rearming Europe, boosting Ukraine security, and tackling migration as a "great challenge to the social balance of our societies." She also underlined the need for fewer burdens, more strategic investments and boosting the green transition as a driver for growth and jobs.
Isabelle Roccia, CIPP/E, is the managing director, Europe, for the IAPP.
This article originally appeared in the Europe Data Protection Digest, a free weekly IAPP newsletter. Subscriptions to this and other IAPP newsletters can be found here.
