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EU mulls pause of key parts of AI Act as US and Big Tech push back

EU considers pausing parts of the AI Act due to US and big tech push-back — global AI regulation at a crossroads.
The European Commission is reportedly considering a temporary suspension of parts of the landmark AI Act amid pressure from US policymakers and large technology companies, according to the Financial Times.
The move highlights tensions between rapid AI innovation and regulatory safeguards. For global markets and AI-driven sectors in India and the US, this signals potential shifts in compliance frameworks and investment risk horizons.
The decision is expected to come ahead of a major EU policy forum next month.