
AI Act Omnibus: AI as a building block for sovereignty, resilience and competitiveness
On 7 May 2026, the European Commission, the Council and the European Parliament reached agreement on an Omnibus package for the AI Act. The debate around the AI Act goes beyond regulatory fine-tuning. At its core, it is about Europe’s ability to translate AI technologies into industrial applications – and in doing so, to strengthen value creation, resilience and technological sovereignty in a sustainable way. In an increasingly competitive global environment, it is crucial for Europe to combine ambitious regulatory objectives with a strong industrial base. The BDI is committed to ensuring that companies in Germany and across Europe can not only develop AI technologies, but also scale and deploy them widely in industrial contexts.
Concrete relief for industry
The timelines for high-risk AI systems have been extended to December 2027 (Annex III) and August 2028 (Annex I). This introduces a greater degree of realism into implementation and provides companies with much-needed planning certainty – particularly given that harmonised European standards are still under development.
At the same time, a key issue for industrial AI has been addressed. AI systems in the context of the Machinery Regulation will no longer be automatically classified as high-risk. This significantly reduces overlapping regulatory requirements for companies. Further adjustments – including stronger alignment with existing sectoral frameworks, clarifications to the high-risk definition and simplifications in conformity assessment procedures – directly reflect input from industrial stakeholders.
Further action remains necessary
Despite these improvements, structural challenges remain. In many sectors, companies still face the risk of overlapping requirements stemming from the horizontal AI Act and sector-specific legislation. The extent of actual relief will therefore depend on how the new provisions are specified and implemented in practice. The BDI will continue to engage closely in this process, with a clear focus on addressing remaining uncertainties in the interest of businesses. Instruments such as the Digital Fitness Checks can also help identify and reduce unnecessary regulatory burdens.
Physical AI: addressing the next stage early
At the same time, the next stage of development is already taking shape. AI is increasingly moving beyond software into the physical world – in robotics, autonomous systems and industrial applications across sectors such as mobility, healthcare and defence. This convergence of AI and physical infrastructure (“physical AI”) is becoming a key driver of productivity, resilience and technological progress.
Outlook: next regulatory milestones ahead
The AI Act Omnibus is thus part of a broader policy landscape. With a forthcoming Digital Omnibus and further initiatives in the context of a European Tech Sovereignty Package, the next key policy decisions are already on the horizon.
Polina Khubbeeva
Federation of German Industries

Lukas Martin
Federation of German Industries
