Germany wins machinery exemption from EU AI law

Germany secured a carve-out for industrial machinery under the EU AI Act, according to Politico. Five EU diplomats confirmed ambassadors aligned behind the push on Wednesday morning. Siemens and Bosch are among the named beneficiaries.

The original AI Act was designed to cover all sectors without exception. This rollback marks the first significant retreat from EU digital rules, arriving under U.S. pressure and warnings from European industry that strict AI restrictions erode global competitiveness. Chancellor Friedrich Merz personally promised German CEOs to fight for a lighter regime.

The wider deal also delays enforcement of high-risk AI rules by more than a year and extends watermarking requirements for AI-generated content. Watch whether other member states use Germany's win as a template to carve out their own strategic sectors.