EU Formalises AI Omnibus Deal — Simplifies AI Act Obligations Ahead of August 2026 Full Enforcement

The European Parliament and Council formally endorsed the 'AI Omnibus' package on May 16, a set of targeted amendments to simplify AI Act implementation obligations ahead of the law's full enforcement date on August 2, 2026. Key changes include: the deadline for national AI regulatory sandboxes extended to August 2, 2027; transparency obligations for AI-generated content adjusted to a December 2, 2026 deadline; and a streamlined compliance pathway for SMEs using general-purpose AI (GPAI) models. The full AI Act — including the Commission's enforcement powers over GPAI model providers — remains on track to apply from August 2026. The agreement follows a May 7 political deal and comes as the EU races to ensure a functioning AI regulatory ecosystem before enforcement begins. The GPAI provisions will affect major AI companies including those from the US and China offering services in the EU.