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February 24, 2025

EU's AI Act could soon be tweaked as part of upcoming 'fitness check'

Some fear regulation may prevent homegrown AI companies competing with American giants

Martin Coulter

2 min read

The European Union's wide-sweeping AI Act could soon be tweaked as part of an upcoming "fitness check" on existing regulations.

By far the most comprehensive set of laws governing the technology seen anywhere so far, the Act has slowly been coming into effect, introducing new obligations on organisations using AI, emphasising ethics, safety and transparency.

Lucilla Sioli, who oversees AI and digital industry for the European Commission, confirmed last week the Act could be tweaked as part of a review of the bloc's tech regulations, expected before the end of the year, according to specialist news site MLex. "It's a reflection that is taking place, and we will see what it brings about," Sioli said.

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Europe — often perceived as a heavy-handed tech regulator stifling innovation — has made nurturing homegrown AI startups capable of competing against deep-pocketed companies in the US a priority.

But critics say the bloc's stringent regulations are holding back innovation, with some tech leaders even calling for a "DOGE for Europe", in reference to the de-regulating US government agency currently overseen by Tesla billionaire Elon Musk.

Earlier this month, a fresh set of regulations came into force, with some systems banned altogether, and staff at companies using the technology expected to reach a certain level of “AI literacy”.

Companies deemed to have used AI for any of the now-banned purposes — including emotion recognition, facial databases and social scoring — risk fines of up to €35m or 7% of annual global turnover, whichever is highest.

The next key date for AI companies operating in the EU is August 2, when rules around general-purpose AI systems, such as OpenAI’s ChatGPT, will come into effect. Behind the scenes, lawmakers and industry leaders are still debating exactly how those rules will be enforced, with practical guidance expected in the spring.

A European Commission spokesperson declined to comment.

Martin Coulter

Martin Coulter is Sifted's news editor, based in London. You can follow him on LinkedIn and X