EU AI Act Omnibus Regulation: Compliance Deadlines Postponed, Fines Raised to EUR 35 Million

The European Union has enacted the Digital AI Omnibus Regulation, introducing sweeping changes to AI regulations. This regulation significantly revises the compliance timeline for businesses under the AI Act. While compliance deadlines for high-risk AI systems have been postponed, the scope of sanctions for prohibited practices has been expanded and penalties have been increased. Under the new regulation, fines for prohibited AI applications can reach up to EUR 35 million. System Architect Amine Arzu Uğur highlights that, in addition to these fines, the use of 'shadow AI'—AI tools used without corporate approval—poses serious risks, potentially leading to data breaches. According to Uğur, data breaches caused by shadow AI, when combined with other violations, stand out as an aggravating factor in penalties. This necessitates that companies develop a comprehensive compliance strategy covering not only official AI systems but all AI usage. Otherwise, they may face severe financial and reputational consequences. The Omnibus Regulation marks the beginning of a new era in AI regulation across the EU. Businesses must strengthen their internal audit mechanisms and manage AI usage transparently to adapt to the revised timeline and increased enforcement risks. Proactive steps in data security and legal compliance are of paramount importance. This is not investment advice.