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The AI Omnibus: what it means for AI strategies

At a glance

  • For AI leaders, the EU AI Act has fundamentally influenced their strategy. It sets key rules for how AI can be built and deployed across the EU and influences the use cases they choose to scale.
  • The AI Omnibus was the subject of a political agreement reached by EU policymakers on 6 May. It sets out a package of targeted, yet important, changes to the EU AI Act and is expected to become law by the end of July. However, the changes do not materially affect the framework or the fundamental requirements set out in the AI Act.
  • The AI Omnibus is likely to influence AI implementation roadmaps. It extends key compliance deadlines for high-risk AI systems and certain transparency requirements, while also making parts of the regime more proportionate. It also introduces a new prohibition on harmful AI-generated content.
  • Some changes make compliance easier (e.g. lighter registration requirements in some cases), but the new prohibition moves in the opposite direction. The priority is to review AI strategies in light of these changes, ensuring strategy, risk and compliance work together to identify the impact on end-to-end AI implementation.
  • The foundational work remains non-negotiable. Organisations should prioritise robust risk tiering for their AI systems and clear documentation of their governance, risk management and control frameworks. These capabilities will be critical both to meet existing obligations and to prepare for the detailed standards and guidance as they emerge.
  • This article examines the six key areas of the AI Omnibus that matter most for organisations, and what they mean in practice.

Important notes:
1. This article reflects the state of play as of 21 May 2026. Formal adoption of the AI Omnibus legislation is still pending, and the final legal text may contain minor refinements.
2. The AI Omnibus also makes changes to the AI Act’s rules for AI built into products covered by separate EU product-safety laws (so-called Annex I AI systems). These changes are out of scope of this article.

What is the AI Omnibus, and what is it not?

In essence, the AI Omnibus amends selected deadlines and provisions of the EU AI Act. It is not a repeal or a wholesale rewrite. The AI Act remains in force and parts of it already apply (see Figure 4 at the end of this article for the full AI Act implementation timeline). Its core framework, including risk-based classification, prohibited practices, obligations for General Purpose AI (GPAI) model providers, requirements for high-risk AI systems, and transparency obligations, all still stand [See EU AI Act: Forging a strategic response].

The EU introduced the AI Omnibus to address a practical problem. The next and most demanding wave of obligations, covering high-risk AI systems and transparency requirements, was due to take effect in August 2026. However, the supporting ecosystem of technical standards, guidance and supervisory infrastructure needed to operationalise those rules was not going to be ready in time.

To address this, the AI Omnibus makes targeted amendments to the AI Act to push back selected compliance timelines. However, the EU has also used the package to clarify certain supervisory arrangements and refine a limited number of requirements to make them more proportionate and more supportive of innovation. In response to recent market developments, the Omnibus also introduces a new ban on AI-generated intimate imagery without consent.

Following political negotiations, the AI Omnibus is now expected to become law by the end of July (see Figure 1). This will provide organisations with important legal certainty on compliance deadlines. This article examines six key areas addressed by the AI Omnibus and what they mean for businesses.

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Figure 1 - AI Omnibus finalisation timeline (estimated)

High-risk AI systems: compliance deadlines are set to move back

This is one of the most significant changes in the package. The AI Act imposes detailed requirements on high-risk AI systems, such as those used in recruitment, credit scoring, law enforcement, education, or other essential private and public services. These extensive requirements cover areas including data quality and management, technical documentation, human oversight, and accuracy and robustness, among others.

Under the current timetable, they are due to take effect on 2 August 2026 for standalone high-risk AI systems (in Annex III of AI Act). This deadline has now been pushed back to 2 December 2027.

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Figure 2 - Changes to compliance deadline for high-risk AI systems

The expectation is that this delay will provide sufficient time for the technical standards currently being developed by European Standardisation Organisations1 to be finalised. However, it remains unclear what happens if they are not, which is still a possibility given the slow pace of progress so far.

The Commission has the legal power to issue its own technical specifications as a fallback, alongside AI Act guidelines. The AI Omnibus reinforces this, requiring the Commission to make sure supporting tools (guidance, standards, codes of practice) are available in good time. However, no detailed timelines or contingency plans have been set out so far, so this is an area that warrants monitoring. Further delays to the compliance deadlines themselves, however, are highly unlikely, in our view.

Key takeaway: The requirements for high-risk AI systems are not changing. Only the timeline is shifting. Organisations should treat this additional time as an opportunity to build effective AI governance and compliance frameworks that will better position them to implement emerging standards and guidance, and to be ready when the obligations take effect.

Short grace period for marking and labelling AI-generated content

The AI Act sets out transparency rules to ensure people know when they are interacting with AI or viewing AI-generated or manipulated content. The simpler requirements, such as informing users that they are interacting with AI, remain unchanged and will apply from August 2026.

However, the AI Omnibus adjusts the deadline for a more significant and technically challenging obligation. This involves marking AI-generated content in a machine-readable format so that it can be more easily detected.

This could involve, for example, embedding digital watermarks or metadata that automated systems can read, rather than just attaching a visible label.
The agreed deal will give AI systems already on the market before 2 August 2026 an extra four months to comply, setting a new deadline of 2 December 2026. However, any new generative AI (Gen AI) product launched on or after 2 August 2026 will need to comply from day one, a distinction that has direct implications for product release planning.

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Figure 3 - Changes to compliance deadline for marking and labelling AI-generated content

To support this requirement, the Commission’s AI Office is developing a voluntary Code of Practice on the marking and labelling of AI-generated content. This Code aims to provide organisations with practical guidance on complying with these transparency rules. A second draft was published in March, with the final version expected by mid-2026. Although voluntary, the Code is likely to become the benchmark against which regulators will assess compliance in practice.

Key takeaway: The grace period, where it applies, is short, while implementing the technical requirements will take time and effort. Also, while existing AI systems receive a limited extension, new Gen AI products launched after 2 August 2026 will need to comply from day one. Organisations should therefore treat content marking as an active priority and integrate compliance deadlines into their go-to-market plans.

A new ban on AI-generated intimate imagery without consent

The AI Omnibus introduces a new outright ban on AI systems that create or manipulate sexually explicit images, videos, audio or similar material of real, identifiable people without their consent. This covers so-called “nudification” tools and other forms of deepfake intimate imagery. The ban also covers AI-generated Child Sexual Abuse Material (CSAM)2.

This prohibition falls within the AI Act’s most serious category of banned practices and carries the highest available penalties: fines of up to €35 million or 7% of global annual turnover.

Providers should be aware that this ban will apply if their AI system is intended to generate this type of content, or where such misuse is foreseeable and reasonable technical measures and other safeguards are not in place to prevent and address it. Deployers will be subject to the ban only where they intentionally use a system to generate such content.

The Omnibus also lists examples of what would count as robust technical measures and safeguards. These include data cleaning, training the model to refuse harmful prompts, safer prompt and output design, runtime guardrails, content classification and filtering, usage restrictions, abuse detection, and effective notice and action mechanisms. It will not be enough to have safety measures in place at launch. Safeguards must remain aligned with evolving industry best practices and standards, effective over time, and capable of addressing foreseeable attempts to bypass them.

However, the ban applies only to realistic depictions of identifiable people. It excludes cartoon-like or impossible images, non-realistic artistic works, consent-based try-on apps, and legitimate medical uses. Edits that do not make an image more revealing, such as captions, background changes or brightness adjustments, are also excluded.

The new prohibition will take effect from 2 December 2026.

Key takeaway: It is now certain that this ban will be included in the final AI Omnibus legislative text. Organisations developing, deploying, or distributing Gen AI systems capable of producing realistic imagery of people should review their safety measures to consistently prevent misuse, both pre- and post-market. They must also ensure clear procedures and adequate resources to promptly investigate and act on misuse reports.

The AI Office: a bigger remit

The Commission’s AI Office already acts as the supervisor of GPAI model providers under the AI Act. Supervision of AI systems, however, remains largely the responsibility of national regulators in each EU member state. The AI Omnibus changes this, giving the AI Office direct oversight of two categories of AI systems at EU level:

  1. AI systems that qualify as, or are embedded within, designated VLOPs and Very Large Online Search Engines (VLOSEs) under the DSA. For instance, this could include AI systems used to drive content recommendations on a social media platform or AI overviews in search results.
  2. AI systems built on a GPAI model developed in-house, whether deployed by the same organisation or by another company within the same group.3  For example, a company may develop a GPAI model and build a Gen AI assistant on top of it, using it internally for customer service, but also selling it to other businesses. Where the company uses the assistant internally, it is both a provider and a deployer, so supervision of both the GPAI model and the assistant will fall to the AI Office. Where the same assistant is sold to an external customer, such as a bank, online retailer or airline, deployment within that customer’s organisation remains supervised by the relevant national regulators.

Where it has supervisory competence, the Omnibus gives the AI Office a full enforcement toolkit. This includes the power to open investigations, conduct on-site inspections, accept binding commitments from organisations, and impose penalties for non-compliance. However, for AI systems within VLOPs and VLOSEs, the main route for assessment remains the risk and audit framework already in place under the DSA. The AI Office will still be able to investigate and enforce non-compliance with the AI Act on an ex post basis.

Key takeaway: For companies developing GPAI models and AI systems built on them, deployed within the same corporate group, centralised EU supervision can streamline regulatory processes. The AI Office becomes the main contact for AI Act compliance, rather than multiple national regulators. However, this simplification has its limits. Organisations selling AI systems across the EU will still be required to engage with national authorities, both directly and indirectly – for example in relation to incident management and reporting, compliance support for deployers, and in relation to other regulations like data protection or sector-specific regulation.

Registration of lower-risk AI systems in high-risk areas: obligation simplified, not removed 

Under the AI Act, AI systems used in areas such as recruitment, credit scoring or access to other essential services are classified as high-risk. However, not all AI systems in these areas will necessarily meet that threshold. Organisations can assess their systems and conclude that they fall below it. This may be the case, for example, where a system performs only a narrow procedural task, such as document sorting, and does not directly influence individual decisions. AI systems below the threshold do not need to meet the full high-risk requirements. They do, however, still require registration in the public EU AI system database.

The Commission had proposed eliminating the registration obligation altogether, arguing that it imposed an unnecessary burden on organisations. However, the final agreement maintains the registration requirement, albeit in a simplified and less information-intensive form.

What is not being eased is the assessment itself. Organisations operating in high-risk areas will still need to determine whether their AI systems meet the threshold, document that reasoning thoroughly, and be prepared to share it with regulators on request.

Key takeaway: While the simplified registration form will reduce administrative burden, the underlying assessment remains unchanged and is the critical compliance step. If a regulator queries why an organisation assessed an AI system as falling below the high-risk threshold, the rigour and evidence behind that assessment will matter. Organisations should therefore ensure their assessment processes are robust, well-documented, and defensible.

General AI literacy obligation: softened, but not for high-risk systems.

The AI Act currently places a general obligation on all providers and deployers of AI systems to ensure a sufficient level of AI literacy in their organisations (Article 4). This obligation has been in effect since February 2025. However, the requirement is broadly phrased, and many stakeholders have argued that it is too imprecise to be meaningfully implemented or enforced.

The Omnibus amends the general AI literacy requirement. It replaces organisations’ existing duty to “ensure” AI literacy with a lighter obligation to “take measures to support the development of” AI literacy. Importantly, the Omnibus clarifies that organisations are not required to guarantee any specific level of AI literacy for any individual. The Commission and member states are also required to support organisations in fulfilling this obligation, including by publishing practical guidance.

However, it is important to distinguish this general AI literacy obligation from the separate, more specific requirements that apply to high-risk AI systems. The AI Act’s high-risk framework includes detailed obligations around human oversight, and staff competence and training for individuals involved in operating or overseeing high-risk AI systems. These requirements are not affected by the Omnibus and will apply in full once the high-risk deadlines take effect.

Key takeaway: The softening of the general AI literacy duty does not diminish the need for organisations to invest in AI skills and competence. For those operating high-risk AI systems, specific obligations remain firmly in place. Beyond the AI Act’s legal requirements, without an appropriate level of AI literacy, organisations will not be able to deploy AI responsibly, compliantly, and in line with their risk appetite.

What next for the AI Omnibus?

Following the political agreement, the AI Omnibus will proceed to a formal vote in Parliament and Council for ratification, likely in June.

Barring any unforeseen late issues, the AI Omnibus and its extended compliance timelines should become law by the end of July 2026. We will provide further analysis as the final text becomes available and the supporting guidelines and standards take shape.

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Figure 4 - AI Act timeline: original and as amended by AI Omnibus

Footnotes:

1. Once finalised and approved by the Commission, these will be known as 'harmonised standards'. Although industry-led and voluntary, once their reference is published in the EU Official Journal, conformity with the harmonised standards will provide a presumption of compliance with the relevant obligations of the AI Act.
2. Some narrow exceptions apply for legitimate uses such as law enforcement investigations and authorised safety testing.
3. There are formal exceptions for financial institutions, law enforcement, and border management authorities. However, in most cases these exceptions have limited practical relevance. The AI Office's expanded remit only applies where an organisation both builds a GPAI model and deploys an AI system on top of it, which is not a typical profile for organisations in those sectors.