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The EU AI Act: What the 2023 Deal Changed—and What Applies Now

The EU’s December 2023 AI deal was provisional, not the law’s start date. The AI Act entered into force in 2024, with rules phasing in through 2028 after 2026 amendments.
From TheFinanceBase Team5 min to read
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The EU’s 9 December 2023 AI deal was a provisional political agreement between Council and Parliament negotiators—not the law’s formal adoption or its start date. The AI Act entered into force on 1 August 2024, and its rules are being phased in. As of 30 September 2026, some provisions already apply, while the 2026 AI Omnibus has pushed certain high-risk requirements to 2027 and 2028.

What did the EU agree on in December 2023?

After three days of talks, negotiators for the Council of the European Union and the European Parliament reached a provisional agreement on a draft law. The Council described its approach as risk-based: the greater the potential harm to society, the stricter the requirements should be. The deal covered high-risk AI systems, high-impact general-purpose AI models that could create systemic risk, EU-level enforcement powers, and additional prohibited practices.

It also called for deployers of high-risk systems to carry out a fundamental-rights impact assessment before use. The negotiators discussed scope exclusions, including areas outside EU law, national security, exclusively military or defence use, research and innovation, and non-professional personal use. Those were features of the provisional agreement; the enacted regulation sets the precise legal terms.

At the time, Spain’s secretary of state for digitalisation and artificial intelligence, Carme Artigas, called the agreement “a historical achievement” and said it struck a balance between promoting AI and respecting citizens’ fundamental rights. That was her political characterization of the deal, not an independent assessment of its effects.

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What is the EU AI Act?

The AI Act is a Union-wide law that sets obligations for AI according to the risks associated with systems and models. It is not a single rule that treats every AI application alike: the Act distinguishes among prohibited practices, high-risk systems, and general-purpose AI, with requirements depending on the relevant category and role.

High-risk AI

For high-risk systems, the framework includes obligations for providers and deployers. The original deal specifically highlighted a fundamental-rights impact assessment by deployers before using a high-risk system. Which requirements apply, and when, depends on the Act’s provisions and the system’s classification.

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General-purpose AI and prohibited practices

The Act also establishes rules for general-purpose AI models, including additional provisions for models considered to pose systemic risk. It prohibits certain AI practices. The 2026 AI Omnibus added a ban on AI-generated non-consensual sexual or intimate content and child sexual abuse material, among other changes.

When do the EU AI rules take effect?

The Act applies in stages. The European Commission’s implementation timeline, current as of 30 September 2026, gives these key dates:

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Date What it means
1 August 2024 The AI Act entered into force.
2 February 2025 General provisions, definitions, AI literacy requirements, and prohibitions began applying.
2 August 2025 Rules for general-purpose AI and governance began applying.
2 August 2026 The majority of the Act’s rules and enforcement for applicable provisions began. The Commission says the AI Office and member-state authorities are responsible for implementation, supervision, and enforcement from this date for applicable rules.
2 December 2027 Under the amended schedule, rules for high-risk AI use cases in Annex III are due to apply.
2 August 2028 Under the amended schedule, rules for high-risk AI embedded in regulated products covered by Annex I are due to apply.

The dates do not mean that every obligation began in 2026, or that every rule now applies uniformly. Some provisions took effect earlier; others retain transition periods. The European Commission’s timeline reflects amendments made by the AI Omnibus, which entered into force on 27 July 2026.

What did the 2026 AI Omnibus change?

The Omnibus revised parts of the Act and its implementation timetable. In addition to the 2027 and 2028 dates above, the Council’s May 2026 account of the provisional agreement described these changes:

  • A ban on AI-generated non-consensual sexual or intimate content and child sexual abuse material.
  • A shorter grace period for marking synthetic content.
  • A later deadline for national regulatory sandboxes.
  • Clarified AI Office jurisdiction, with exceptions.
  • Adjustments for small mid-cap companies and industrial sectors.

The Commission reports that the Omnibus entered into force on 27 July 2026. The timetable and obligations should therefore be read against the amended Act, rather than the 2023 political deal alone.

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Is the EU really racing ahead of the United States?

The comparison is defensible if it means that the EU adopted a comprehensive, Union-wide AI statute before the United States adopted sweeping federal AI rules. It is misleading if it suggests that the U.S. had no AI policy or regulation.

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Comparison European Union United States
Government level and legal approach A comprehensive Union-wide statute, with implementation and enforcement by EU and member-state authorities. A more distributed policy picture involving federal, state, judicial, and executive channels, as described in a 4 September 2026 Axios interview and report.
Organizing principle A risk-based framework with obligations that vary by category, including high-risk AI and general-purpose AI. The cited report describes a mix of approaches rather than one equivalent, comprehensive federal AI statute.
Timing The Act entered into force in 2024; provisions are applying in stages, with some high-risk deadlines in 2027 and 2028. The cited Axios account discusses the U.S. policy landscape as of 4 September 2026; it is not a complete survey of U.S. law.

In that Axios interview, European Commission tech chief Henna Virkkunen said: “We see when it comes to technologies that in the USA the culture is different. So often it’s coming via court cases, but often very similar things anyway, very similar concerns.” The quote captures her comparison; it does not establish that the two jurisdictions have identical rules or outcomes. The report also described U.S. executive actions, voluntary frameworks, national-security restrictions, and state laws and court cases.

What should organizations and AI users take from the timeline?

The dates matter because obligations depend on the relevant provision and use case, not simply on whether a product uses AI. An organization evaluating a system should identify its role, the system’s relevant category, and the applicable date under the amended Act; a general-purpose AI tool and a high-risk use case do not necessarily follow the same schedule. For current implementation details, consult the European Commission’s AI Act timeline and the enacted regulation rather than relying on summaries of the 2023 deal.

For consumers, the headline does not mean that every AI tool is banned or subject to the same safeguards. The Act is a framework with different rules and transition dates, and the 2023 announcement was only the beginning of the legislative process.

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