Legislative Timeline Confirmed

A European Parliament committee is expected to present its joint draft report on the Cloud and AI Development Act in December 2026. According to a provisional timetable seen by MLex, a vote on the Cloud and AI Development Act is planned for mid-March 2027.

The Cloud and AI Development Act is a central part of the EU’s technological sovereignty legislative package, designed to strengthen European capabilities in cloud infrastructure and artificial intelligence development.

Industry Concerns Raised

The Cloud and AI Development Act has raised concerns in the tech industry, with questions about how its provisions will balance regulatory requirements with competitive pressures as European companies work to keep pace with US and Chinese counterparts.

Broader AI Governance Activity

The legislative push comes as the EU AI Board met on 17 September 2026 to discuss progress on implementation of the EU AI Act and wider developments in European and international AI policy. The Board’s discussions focused on enforcement priorities, frontier AI capabilities, and AI safety, alongside market surveillance mechanisms, pre-market conformity assessments, and the EU’s wider Action Plan on Cybersecurity and AI.

Meanwhile, the European Commission has provided updates on measures supporting the AI Act’s transparency obligations, which came into force on 2 August 2026, including implementation guidance and a Code of Practice relating to AI-generated content.

Child Safety and AI Companions

The EU has also proposed forcing companies to make AI companions and chatbots safe before children use them, specifying that AI chatbots must not simulate interpersonal relationships in ways that create emotional dependency.

Emerging Governance Challenges

The European Group on Ethics in Science and New Technologies (EGE) has called for a new governance framework to address the convergence of neurotechnology and artificial intelligence. Neuro-AI systems rely on neurodata, including information collected from devices that read brain activity, to develop AI-powered applications.


Source: MLex