The collapse of Tuesday’s trilogue exposes deep divisions over whether high-risk AI systems embedded in consumer products should be exempt from the world’s strictest AI rules After 12 hours of negotiations on Tuesday, EU member states and European Parliament lawmakers failed to reach a deal on proposed changes to the bloc’s landmark AI Act. Talks will resume in May, according to Reuters. “It was not possible to reach an agreement with the European Parliament,” a Cypriot official said, Cyprus currently holding the rotating EU Council presidency. The failed session was the final scheduled political trilogue on the AI Omnibus, a package of amendments to the AI Act that entered into force in August 2024, as well as proposed changes to the GDPR, the e-Privacy Directive, and the Data Act. The Omnibus is framed as a competitiveness measure, aimed at reducing regulatory burdens on businesses to help European companies keep pace with US and Asian rivals.…