If confirmed, the change marks a dramatic departure from the law’s initial form, which was designed to cover all sectors and uses of artificial intelligence.
But Germany has faced resistance from a group of ten countries that warned that settling AI under sectoral law amounted to “deregulation, not simplification.”
The decision comes as part of a broad review of the AI law that will also delay restrictions on high-risk uses of AI in the EU by more than a year and give companies a grace period to meet new requirements to watermark AI-generated content.
A deal on Wednesday would be the first significant rollback of rules in the digital space, as the EU faces pressure from the U.S. over its tech legislation and amid warnings from its own industry and governments that strict restrictions will put the bloc at a disadvantage in a global AI race.
Out of time
EU countries swung behind Germany’s demands on Wednesday morning when EU ambassadors backed a pitch by the Cypriot presidency of the Council of the EU, which leads negotiations on behalf of countries, to change the law’s annex to exempt machinery.
More than a dozen ambassadors backed the change, according to five EU diplomats, giving the Cypriots the mandate to push for the exemption at final negotiations with the European Parliament and the European Commission on Wednesday night.