EU countries and European Parliamentlawmakers failed to reach a deal on watered-down landmark artificial intelligence rules after 12 hours of negotiations on Tuesday and will resume talks next month, Reuters reported. 

The changes to the AI Act, which entered into force in August 2024 with key elements set to be enforced ⁠in ⁠stages starting this year, are part of the European Commission's Digital Omnibus, which aims to simplify a slew of regulations in the digital sector to help businesses catch up with US and Asian rivals.

Europe's AI rules, considered to be the strictest in the world, came amid concerns about the impact of the ​technology on children, workers, companies and cybersecurity.