EU Council and Parliament negotiators have reached a [provisional Digital Omnibus agreement](https://www.consilium.europa.eu/en/press/press-releases/2026/05/07/artificial-intelligence-council-and-parliament-agree-to-simplify-and-streamline-rules/) that resets the AI Act's compliance clocks. Obligations for standalone high-risk systems under Annex III, the category covering recruitment and credit scoring, move from 2 August 2026 to 2 December 2027. Product-embedded high-risk systems shift to 2 August 2028. Not everything loosens. The deal adds a new prohibition on AI generation of non-consensual intimate content and child sexual abuse material, with compliance due by 2 December 2026, and cuts the grace period for AI-generated content transparency and watermarking from six months to three. National regulatory sandboxes get until 2 August 2027. Formal adoption is expected before the original August 2026 deadline, [per Bird and Bird's analysis](https://www.twobirds.com/en/insights/2026/digital-omnibus-on-ai-provisional-agreement-reached-at-the-may-trilogue). For Australian organisations selling into the EU, or HR teams benchmarking AI recruitment tools against EU categories, the timeline moved but the direction did not: delayed, not diluted.
Tags
TheAICommand. Intelligence, At Your Command.



