August 24, 2026, (Inside AI) — The European Union’s AI Omnibus entered into force on July 27, revising key parts of the landmark AI Act. It extends deadlines and trims compliance duties for high-risk systems. This is not deregulation. It is a structural correction based on implementation reality.
The move signals that even the world’s most ambitious AI rulebook must bend when technology outpaces legislation. For India, which has avoided a comprehensive AI law, the EU’s reset offers a live case study in regulatory adaptation.
The original EU AI Act used a risk-based framework. Some practices were banned outright. High-risk systems faced strict obligations. General-purpose models got their own rules. Yet enforcement proved harder than drafting.
India has chosen a different route. It leans on responsible AI principles, sector-specific governance, and innovation-friendly policy. That flexibility is valuable, but it risks becoming uncertainty. Businesses need predictable rules. Citizens need enforceable protections. Regulators need clear mandates.
The EU’s course correction carries five lessons for India. First, regulation must learn. Risks evolve. Rules must be reviewed and revised continuously. A static law is a liability.
Second, regulation needs an escape valve. Rules only work if regulators and companies can actually implement them. India should build regulatory sandboxes and periodic rule reviews. Sunset clauses could force lawmakers to justify old rules against new realities.
Third, compliance costs hit smaller players hardest. Large technology firms can absorb legal and engineering overhead. Startups cannot. Heavy compliance can quietly entrench incumbents and throttle competition.
Fourth, simplification is not deregulation. Cutting paperwork is not cutting safeguards. AI creates real risks around privacy, discrimination, manipulation, and opaque decisions. India must ensure lighter rules do not mean weaker protection.
Fifth, institutional maturity means admitting when rules fail. The EU demonstrated that even a major framework can be revised. That is a strength, not a weakness.
India brings its own advantages. A vast digital population. Deep experience with digital public infrastructure. A growing technology sector. These assets can support an adaptive governance model.
The IndiaAI Mission can anchor this effort. Sectoral regulators, research institutions, and industry bodies should coordinate. The goal is a framework that protects citizens while allowing experimentation.
The debate often frames regulation and innovation as opposites. That is a false choice. The real challenge is designing rules that make innovation safer and more trusted.
The writer is assistant professor, School of International Studies, JNU.
