EU AI Act Faces Collapse Amid Foundation Model Disputes

Germany, France, and Italy are pushing for self-regulation of foundation models instead of strict rules, threatening to derail the landmark EU AI Act. A final trilogue in December must resolve these tensions before upcoming elections pause the legislative process.

Ongoing trilogue negotiations over the EU AI Act face a critical roadblock as France, Germany, and Italy reject comprehensive regulation for foundation models. These nations advocate for self-regulation through a code of conduct to protect their domestic AI companies, creating a sharp U-turn from the previously agreed graduated regulatory approach.

The European Commission responds by proposing a compromise text that keeps the tiered system but significantly weakens the overall rules. This watered-down proposal serves as the new baseline for discussions, though it faces expected pushback from the European Parliament, which generally favors stricter oversight for powerful AI systems like ChatGPT.

Time is running out for lawmakers to reach a consensus before the December trilogue deadline. Failure to agree now risks considerable delays or the complete collapse of the legislation, threatening the EU's position as a global pioneer in AI regulation ahead of next summer's parliamentary elections.

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