Council of the EU adopts AI simplification regulation under Omnibus VII

The Council of the EU has given final approval to a regulation aimed at simplifying and streamlining parts of the EU’s AI rulebook.

The Council announced the adoption on 29 June 2026. The measure forms part of the EU’s Omnibus VII package, which is linked to the bloc’s wider simplification agenda.

The regulation changes several application dates under the AI Act. Rules for stand-alone high-risk AI systems will now apply from 2 December 2027. Rules for high-risk AI systems embedded in products will apply from 2 August 2028.

High-risk AI systems are systems used in sensitive areas where their impact on people’s rights, safety, or access to essential services may be significant. These can include AI systems used in employment, education, law enforcement, border management, critical infrastructure, or certain regulated products.

The Council said the delay is intended to provide greater legal certainty and support more harmonised implementation across the EU.

The regulation also introduces a new prohibition in the AI Act. It bans AI practices involving the generation of non-consensual sexual or intimate content, as well as AI-generated child sexual abuse material. AI systems that generate nude images of real people or alter existing images to reveal intimate body parts are set to be banned from December 2026.

The new law also changes the implementation deadlines. National authorities will have until 2 August 2027 to establish AI regulatory sandboxes. These sandboxes are controlled environments where companies and authorities can test AI systems under regulatory supervision.

The grace period for providers to implement transparency measures for artificially generated content is reduced from six months to three months. The new deadline is 2 December 2026.

The regulation also clarifies the AI Office’s role in supervising AI systems based on general-purpose AI models when the model and the system are developed by the same provider. Some areas will remain under the purview of national authorities, including law enforcement, border management, judicial authorities, and financial institutions.

Another part of the regulation addresses overlaps between the AI Act and sector-specific EU laws. This applies to areas such as medical devices, toys, lifts, watercraft, and machinery. The new mechanism allows the Commission to limit the application of AI Act requirements where sectoral legislation already contains similar AI-specific obligations.

The Council said the regulation is designed to reduce duplication and compliance burdens, especially for economic operators dealing with high-risk AI systems covered by sectoral product rules.

Marilena Raouna, Deputy Minister for European Affairs of Cyprus, said the adoption aims to support legal certainty, innovation, and growth in the single market, while maintaining protection for fundamental values.

The regulation will be published in the EU’s Official Journal and will enter into force on the third day after publication.