The European Union has reached a provisional agreement to amend parts of the EU AI Act, introducing simplification measures for businesses while also expanding restrictions on harmful AI applications, including so-called “nudifier” apps and AI-generated child sexual abuse material.

The agreement, reached early Thursday by negotiators from the European Parliament and the Council, forms part of the EU’s broader “digital omnibus” package aimed at refining the implementation of the bloc’s landmark AI legislation.

The updated proposal seeks to reduce compliance burdens and legal uncertainty for AI providers while maintaining the AI Act’s core risk-based framework.

Lawmakers said the chan...