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Europe wants to lighten AI compliance burden for startups
Published by Global Banking & Finance Review®
Posted on April 8, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 8, 2025
2 min readLast updated: January 24, 2026
The EU plans to ease AI compliance for startups by minimizing regulatory burdens under the AI Act, with new measures to be presented by Henna Virkkunen.
By Foo Yun Chee
BRUSSELS (Reuters) - The European Commission plans to seek feedback to help lighten the regulatory burden for startups struggling to comply with European Union rules on the use of artificial intelligence, according to a Commission document seen by Reuters.
The move is the latest by the EU executive to water down legislation enacted in recent years following complaints by businesses across Europe about the volume and cost of red tape hampering their operations.
"There is an opportunity to minimise the potential compliance burden of AI Act, particularly for smaller innovators," said the document, the AI Continent Action Plan.
"The Commission aims to build on the first learnings from the current implementation phase and identify further measures that are needed to facilitate a smooth and simple application of the AI Act," it said.
EU tech chief Henna Virkkunen will present the measure on Wednesday.
The 27-country European Union signed off the landmark AI Act last year, a more comprehensive rulebook than the United States' light-touch voluntary compliance approach. China's AI regulations aim to maintain social stability and state control.
The AI Act imposes strict transparency obligations on high-risk AI systems, while the requirements for general-purpose AI models are lighter.
(Reporting by Foo Yun Chee; Editing by Kevin Liffey)
The article discusses the EU's plans to reduce AI compliance burdens for startups under the AI Act.
The AI Act is a comprehensive EU regulation imposing strict transparency obligations on high-risk AI systems.
Henna Virkkunen is the EU tech chief presenting the new measures to ease AI compliance burdens.
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