Your Daily AI Regulation Briefing

EU Finalizes Digital Omnibus on AI, Reshaping Compliance Deadlines and Prohibitions

• The Council of the EU has given its final approval to the Digital Omnibus on AI, which updates the EU's Artificial Intelligence Act and is expected to enter into force in July 2026. This significant development defers the application of high-risk AI system obligations to December 2, 2027, for standalone systems and August 2, 2028, for systems embedded in regulated products, providing businesses with more time for compliance. Additionally, the Digital Omnibus introduces new prohibitions, banning AI systems that generate non-consensual intimate images or child sexual abuse material (CSAM) from December 2, 2026.

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• Separately, the European Union's AI Act will begin broad enforcement on August 2, 2026, marking the end of a one-year grace period and granting the European Commission supervisory powers over companies building powerful AI models. This date signifies a critical shift from policy deadlines to active regulatory oversight, with the potential for fines for non-compliance.

  Spacedaily

• In the United States, Illinois Governor J.B. Pritzker signed the Artificial Intelligence Safety Measures Act into law in early July 2026, establishing new transparency and accountability requirements for large AI models. This landmark legislation includes a first-in-the-nation mandate for annual independent third-party audits for AI developers generating over $500 million in annual revenue. The law, modeled after similar bills in California and New York, contributes to a growing trend of state-driven AI regulation, with 29 states enacting 109 AI laws by July 1, 2026, and notably, demonstrating cross-partisan alignment on companion chatbot regulation.

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• On the federal level, Senator Ed Markey unveiled a new "AI accountability agenda" on July 10, proposing a package of bills aimed at curbing issues such as energy-intensive datacenters, biased automated hiring systems, and harm to children. This legislative push seeks to establish federal safeguards, with Markey emphasizing that a piecemeal state-by-state approach would leave too many people exposed to AI's potential harms.

  The Guardian