Legislative Deadlock: Negotiations to Soften EU AI Act Fail

European bureaucracy cannot keep up with the speed of technological development. On April 29, 2026, after a 12-hour marathon, EU lawmakers failed to reach an agreement on softening the rules within the AI Act.

Europe finds itself in a classic trap: attempting to regulate generative models before their commercial maturation leads to an outflow of AI capital to the US and Asia. The corporate fears voiced earlier by Nokia’s CEO are coming true—strict compliance makes deploying innovations in the EU unprofitable. The parties have postponed the discussion until next month, but every day of downtime widens the technological gap between Europe and market leaders like OpenAI and DeepSeek.

Source: Reuters