Written by: Haim Ravia, Dotan Hammer
The European Commission has welcomed a pivotal political agreement reached on May 6, 2026, between the European Parliament and the Council of the EU regarding the Digital Omnibus on AI. This legislative package is designed to streamline existing artificial intelligence regulations to foster European competitiveness while strictly prohibiting harmful applications, such as AI “nudification” apps.
A central pillar of the agreement is the support provided to small and medium-sized enterprises (SMEs) and “small mid-cap” (SMC) companies. To reduce the administrative “compliance burden,” these firms will benefit from simplified technical documentation requirements and extended privileges. Furthermore, the agreement clarifies the interplay between the AI Act and sectoral safety laws—specifically the Machinery Regulation—to avoid redundant oversight and double regulation for innovators. To encourage development, the EU will grant businesses expanded access to regulatory sandboxes, including a new EU-level sandbox for testing AI solutions in real-world conditions.
The deal includes an explicit ban on AI systems that generate non-consensual sexually explicit content or child sexual abuse material. These “nudification” applications are recognized as posing severe risks to human dignity, personal autonomy, and private life. The prohibition specifically targets realistic depictions of identifiable individuals created without their explicit consent.
The agreement also establishes a clear implementation timeline for high-risk AI systems. Rules for systems used in sensitive areas—including biometrics, education, employment, and border control—will apply from December 2, 2027, rather than August 2026. For AI integrated into products like toys or lifts, the requirements will take effect on August 2, 2028, rather than December 2027. This staggered rollout is intended to ensure that technical standards are fully in place before the rules become mandatory.
Governance is reinforced through the Commission AI Office, which receives enhanced oversight powers regarding general-purpose AI models and very large online platforms. Additionally, the deal allows for the exceptional processing of sensitive personal data solely for detecting and correcting bias in AI systems, helping to prevent discrimination while maintaining strict privacy safeguards.
The European Parliament and the Council must now formally adopt the political agreement before it enters into force.
Click here to read the compromise text of the European Parliament and the Council regarding the simplification of the implementation of harmonized rules on artificial intelligence.
