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EU member states and the European Parliament failed to reach agreement on the Digital Omnibus on AI during a 12-hour trilogue session hosted by the Cypriot presidency. The talks broke down over an exemption that Parliament sought for AI used in products already covered by sectoral safety rules such as machinery, toys, and medical devices. Without finalized technical standards from CEN-CENELEC (not expected before December 2026), companies cannot demonstrate compliance. Both the Council and Parliament had previously agreed to push the high-risk AI compliance deadline from August 2, 2026 to December 2, 2027. Negotiations will resume in May, and if no deal is reached before August 2, the original deadlines will apply. Consumer, medical, and academic groups have opposed the exemption proposal, warning it risks weakening the AI Act's core framework. Computerworld reported the core details. Morrison Foerster noted additional context. Center for Democracy and Technology Europe added corroborating details.