What's the issue?
The EU is certainly a world leader in AI legislation, having introduced its AI Act in March last year. But of course, its ambitions are much greater as it looks to become a global leader in AI itself.
What's the development?
On 9 April 2025, the European Commission (EC) published its AI Continent Action Plan which outlines actions to help achieve the EU's goal of becoming a global leader in AI. Key areas of focus are:
- improving AI data and compute infrastructure – including working towards a Cloud and AI Development Act to stimulate private sector investment in cloud capacity and data centres
- creating data labs and launching a Data Union Strategy in 2025 to create a true internal market for data that can scale up AI solutions
- launching the Apply AI Strategy in the coming months to develop tailored AI solutions, and boost their industrial use and full adoption in the private and public sectors
- facilitating international recruitment
As part of this, the EC is running consultations (which close on 4 June 2025) on:
- feedback for preparatory work for the Cloud and AI Development Act
On 10 April 2025, the EC launched two consultations on a future European Strategy for Artificial Intelligence in Science, a call for evidence and a targeted questionnaire for researchers and the broader research and innovation community. The strategy aims to accelerate responsible use of AI, particularly in science and research. It also paves the way for a European AI Research Council. Alongside the consultations, the EC published an update to the European Research Area Forum's Living Guidelines on the responsible use of generative AI in research. The consultations close on 5 June and the strategy is expected in Q3 2025.
Both initiatives are complemented by the EC's Competitiveness Compass.
Meanwhile there have been rumours that the European Commission may consider simplifying the AI Act even though it's barely a year since it went onto the statute books. Commissioner Virkkunen told reporters that the Commission was considering whether some reporting obligations could be cut and would seek industry views where "regulatory uncertainty is hindering the development and adoption of AI". This would feed into a wider review towards the end of the year.
While there are no specific details on plans to change the AI Act, a spokesperson was quoted as saying "nothing is excluded". This is in line with the Commission's planned review of the burden of the new digital rules on businesses and its stated intention of streamlining obligations which was confirmed by the AI Office as including the AI Act, particularly as it impacts smaller businesses. Some fear that pressure from the Trump Administration may place undue emphasis on simplification at the expense of regulation, and large AI businesses have been lobbying extensively, not only on the subject of the AI Act but in relation to its accompanying codes, in particular, the draft GPAI Code of Practice, currently in its third draft expected to be presented in final form in May.
What does this mean for you?
Whatever the outcome of any review may be, the AI Act machine rumbles on and there should be no question about whether or not to comply with its requirements. As far as the GPAI Code of Practice is concerned, the EC launched a consultation on 22 April 2025, to help inform its planned guidelines to complement the Code of Practice. In addition, it's about to launch a consultation on the classification of AI systems as high-risk. It also launched a survey in early April to gather information on how organisations are complying with the EU AI Act AI literacy requirements which came into effect in February this year.
While some push for simplification, others continue to lobby for legislation covering AI liability. The draft AI Liability Act was dropped shortly after the current Commission was elected, but there are voices in the European Parliament which continue to advocate for legislation in this area. Even if, as is expected, there is no further legislation on AI Liability, we do seem to be getting a Cloud and AI Development Act to include in the legislation mix so the EC's pre-eminent role in AI legislation is set to continue. Whether or not that provides a suitable environment to allow the EU to achieve its wider ambitions in AI remains to be seen.
