EU Delays AI Code of Practice: European Businesses Will Get Guidance By End of 2025

Key guidance to help thousands of companies in the European Union comply with the AI Act is being finalized and could be published by the end of 2025, the European Commission said Thursday. This is a six-month delay from the original plan set in May this year.

A Commission spokesperson confirmed:

"Regarding the regulation of general artificial intelligence (GPAI) models, the European AI Council is currently discussing the timeframe for the implementation of the Code of Practice, with the end of 2025 being seriously considered."

What is GPAI and Why is it Important?

GPAI, which stands for General Purpose AI, is a group of general-purpose artificial intelligence models that includes advanced systems such as OpenAI's ChatGPT, Google's Gemini and Mistral's language model. These systems are not only supporting individual users but are also being integrated into business processes, making their management and control a top priority for policymakers.

The EU AI Act, which was passed by the European Parliament earlier this year, requires organizations using AI to adhere to transparency, safety and unbiased standards, especially for GPAI models that have the potential to have a broad impact on society.

Impact on Businesses
The delay in providing practical guidance could leave many businesses waiting, especially those preparing to deploy or integrate AI at scale.

However, some experts say the delay may be necessary to ensure that regulations reflect the rapidly evolving nature of the technology. Furthermore, the European AI Council is consulting with stakeholders including tech companies, legal experts and human rights organizations before finalizing the rules.

Global Competitive Landscape
While the EU is tightening regulations, other countries such as the US and China are also accelerating the establishment of AI regulatory frameworks. The delay could put tech companies in Europe at a competitive disadvantage if other jurisdictions are more flexible or provide guidance sooner.

In addition, investors are closely watching major AI companies such as Alphabet (GOOGL), the parent company of Google. According to recent data from InvestingPro, GOOGL is not among the most undervalued AI stocks, despite the company's continued rollout of powerful AI tools.

Conclusion
The delay in publishing the AI Code of Practice until the end of 2025 is a small step back in the EU’s long-term strategy to regulate AI development in a sustainable and responsible manner. However, businesses are still waiting for more clarity to ensure compliance and global competitiveness.