Ford, JPMorgan, Amazon Executives Predict Deep Job Cuts as AI Advances

The European Union's General-Purpose AI Code of Practice (GPAI), a key tool for compliance with the EU AI Act, faces a potential delay until late 2025, pushed from its original May 2 target. This reported delay, which comes as some tech companies seek more time for AI Act implementation, particularly for general-purpose AI model rules set for August 2025, introduces near-term regulatory uncertainty. Despite industry calls for deferral, the European Commission affirms its commitment to establishing harmonized, risk-based AI regulations, signaling continued regulatory pressure on AI providers operating within the EU.

Analysis

A potential delay in the release of the EU's General-Purpose AI Code of Practice (GPAI) until the end of 2025 introduces significant regulatory uncertainty for the technology sector. This code is positioned as the central tool for demonstrating compliance with the EU AI Act's rules for general-purpose AI models, which are scheduled to take effect in August 2025. The resulting mismatch between the compliance deadline and the availability of detailed guidance creates a challenging operational environment for AI providers, who may need to prepare for regulatory enforcement without the state-of-the-art practices the code was meant to establish. While some tech companies have reportedly called for a delay to the Act itself, the European Commission's stated commitment to its original goals suggests that regulatory pressure will persist. This situation heightens compliance risk and potential costs for any company developing or deploying general-purpose AI systems within the European market, complicating the rollout of the world's first major AI legal framework.

Key Decisions for Investors

• Investors with exposure to firms developing general-purpose AI models should reassess compliance risk, as the delayed Code of Practice creates a significant guidance vacuum ahead of the August 2025 deadline.
• Monitor official communications from the European AI Board for any formal extension of the compliance timeline, as this would materially reduce near-term regulatory risk for the sector.
• Consider that companies with demonstrable progress in AI governance or those focused on less-regulated, 'limited risk' AI applications may offer a more stable investment profile amidst this uncertainty.