Germany wins machinery exemption from EU AI law

EU ambassadors agreed Wednesday to exempt industrial machinery from the EU AI Act, according to five diplomats cited by Politico. The carve-out directly benefits German heavyweights Siemens and Bosch. Chancellor Friedrich Merz personally promised German CEOs he would fight for a lighter AI regime at EU level.

The change marks a dramatic departure from the law's original design, which was built to cover all sectors. The deal also delays restrictions on high-risk AI uses by more than a year and grants companies a grace period to meet watermarking requirements for AI-generated content.

This is the first significant rollback of EU digital rules, arrived at under pressure from the U.S. and warnings from European industry that strict rules cost competitiveness. Watch whether the machinery exemption becomes a template for other sectors seeking carve-outs in future AI Act reviews.