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What a grace period for AI companies means under the EU code of practice

By Luca Bertuzzi ( July 22, 2025, 11:36 GMT | Comment) -- The European Commission has at last confirmed a grace period to AI companies that sign the AI Act’s code of practice, giving them time to comply with rules on general-purpose AI models before full enforcement begins in August 2026. While the commission initially denied the existence of a grace period, internal documents and private meetings confirmed it as a strategic incentive to boost participation in the code. The grace period offers regulatory leniency in exchange for early alignment, and might have helped secure commitments from OpenAI, Anthropic and Mistral AI, putting pressure on other model providers to do the same or put a target on their back. The European Commission has finally acknowledged that signatories to the AI Act’s code of practice will benefit from a grace period. But how this will function in practice — and why it is appealing to tech companies — remains an implicit bargain....

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