Observed Signal · Mar 11, 2025 · Policy Update · Source: Trending Topics · Impact: 4/5 · Sentiment: Positive
EU AI Act Softening Begins with Weakened Code of Practice
The EU's AI Act is showing a clear trend toward weakening originally strict requirements. The newly published third draft of the General-Purpose AI Code of Practice reveals regulatory requirements being loosened in favor of AI providers. Controls have been reduced to just 18 core obligations, of which only two apply to all providers of general-purpose AI models; the remaining 16 apply only to systems classified as posing 'systemic risk'. The restructuring follows pressure from the technology industry. European Commission official Lucilla Sioli confirmed that a 'fitness check' could revise the AI Act before year-end. The draft also grants notable transparency exemptions for certain open-source models. Finalization of the code has been delayed to May after further consultations with stakeholders. While fines of up to €35 million or 7% of global annual turnover remain on paper, key definitions such as 'general-purpose AI model' remain unresolved, creating gray areas for providers.
Major EU policy update affecting all general-purpose AI providers, including AI-powered advertising and marketing technologies; the softening reduces compliance burdens but creates regulatory uncertainty for AI-driven AdTech.
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Key Takeaways & Evidence Grounding
- The third draft of the EU's General-Purpose AI Code of Practice reduces core obligations to 18, with only 2 applying to all general-purpose AI model providers.
- 16 of the 18 core obligations apply only to AI systems classified as posing 'systemic risk'.
- European Commission official Lucilla Sioli confirmed a 'fitness check' could revise the AI Act before the end of the year.
- The draft grants notable transparency exemptions for certain open-source AI models.
- The final code is expected in May after further stakeholder consultations; fines reach up to €35 million or 7% of global annual turnover.
Connected Companies & Entities
1 Entity mapped“General-purpose AI systems like ChatGPT are to be regulated from August 2, 2025....”
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