Negotiations are Deadlocked
Discussions in the EU regarding possible exemptions from the AI Regulation have come to a standstill, reports Let's Data Science, citing recent negotiation rounds. The parties are unable to agree on where the boundaries should be drawn, creating ambiguity for actors already adapting to the regulations.
For Norwegian companies offering AI-based products or services in the EU market, the situation is directly relevant. The EU AI Act has extraterritorial reach — meaning it doesn't matter whether the company is registered in Oslo or Berlin. If you sell to EU users, the rules apply.
What the Regulation Actually Requires
The EU AI Act is based on a risk-based approach where AI systems are classified from unacceptable to minimal risk. Large Language Models (LLMs) and so-called “general-purpose AI” (GPAI) models are subject to specific provisions, with particularly strict requirements for models deemed to pose “systemic risk.”
A model is considered to have systemic risk if it has been trained with more than 10²⁵ floating-point operations (FLOPs). This practically affects the very largest foundation models — such as the GPT-4 class and equivalents.
Costs are Significant
For Norwegian startups and established technology companies, compliance costs are likely the biggest concern.
According to research, a single high-risk AI application can cost around €52,000 in annual compliance costs. For a startup planning to launch in the EU, it is realistic to budget between €80,000 and €250,000 in the first year alone — including legal assistance, conformity assessments, and infrastructure adaptations. The initial legal mapping alone can cost between €15,000 and €50,000.
Large companies can expect to spend around one million dollars annually on compliance programs. The industry organization DIGITALEUROPE estimates that the total compliance costs for the entire EU economy amount to a staggering €3.3 billion per year.
Norwegian AI Development in a Squeeze
For Norway, an EEA member and thus closely linked to the EU's internal market, the AI Act rules will have a direct impact. Norwegian AI companies with ambitions for growth in Europe cannot opt out of compliance — the question is only when and how.
The deadlocked exemption debate in Brussels makes planning more difficult. Companies that have already invested in compliance measures do not know whether the exemptions they might have qualified for will materialize — or if they will disappear entirely.
The regulation formally came into force in August 2024, but its provisions are being rolled out gradually over several years. The uncertainty surrounding the exemptions means that companies aiming to meet minimum requirements may end up having underestimated what is actually required of them.
What Happens Next
Currently, it is unclear when or if the negotiations on exemptions will loosen. The EU AI Office, which has overall supervision of GPAI models, has not publicly commented on the current deadlock, according to available sources.
For Norwegian businesses, the advice from industry experts is consistent: Begin mapping which systems fall under which risk classes, and allocate budget accordingly. Waiting for political clarification could be a costly strategy.