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The deadline for member states to set up AI regulatory sandboxes has been pushed back by a year to Aug. 2, 2027, the Council said. Watermarking obligations on AI-generated content, on the other hand, will apply earlier than the Commission proposed, from Dec. 2, 2026 instead of Feb. 2, 2027, the Parliament said.
Mid-size firms get more breathing room. Exemptions previously available only to small and medium-sized enterprises now extend to small mid-cap companies, the Council said. The deal also clarifies that the EU’s AI Office will supervise general-purpose AI systems centrally, with national authorities keeping responsibility in areas including law enforcement, border management, judicial authorities and financial institutions.
