Digital Omnibus SME and SMC guide

EU AI Act Small Mid-Cap Relief After the Omnibus

Regulation (EU) 2026/1744 extends specified SME measures to small mid-cap enterprises where its conditions apply, but it does not create a no-evidence card. Smaller organisations still need an AI inventory, role decision, vendor trail, transparency trigger note, and dated source log.

Use the relief-readiness checklist Run the deadline router

Educational planning guide only. Not legal advice. Not a company-size determination. Regulation (EU) 2026/1744 is in force. Use the consolidated Regulation (EU) 2024/1689 and verify the applicable SMC definition, measure and date.

EU AI Act small mid-cap relief planning map showing SME evidence records and Digital Omnibus caveats — Relief planning is useful only when the evidence file remains current.

Quick answer

Small mid-cap relief is a planning category, not an exemption from evidence.

Regulation (EU) 2026/1744 extends specified SME measures to small mid-caps in limited provisions. That is materially different from saying SMEs or small mid-caps can pause EU AI Act readiness.

Keep a lean evidence file and use the consolidated AI Act to verify the exact relief measure, eligibility conditions and application date. The Regulation was published on 24 July 2026 and entered into force on 27 July 2026.

Regulatory logic

What the official sources support

Current legal status

Regulation (EU) 2026/1744 was published on 24 July 2026 and entered into force on 27 July 2026. Check the consolidated AI Act and the exact relief provision before relying on it.

SME to SMC extension

Regulation (EU) 2026/1744 extends specified SME measures to small mid-caps in limited provisions, subject to the legal conditions.

SMC definition context

The Commission's wider simplification note describes small-mid caps as companies below 750 employees and within stated turnover or asset thresholds.

SME and small mid-cap team mapping AI system inventory vendor evidence Article 50 notes and source review logs — The minimum useful file is small: system, owner, role, vendor, trigger, source, decision.

Decision table

What smaller organisations should separate clearly

Question	Conservative planning answer	Evidence to keep
Does relief mean exemption?	No. Treat relief as a proportionality and simplification question until final text confirms the scope.	Relief assumption note and source-review log.
Does the company size matter?	Yes, but company-size status must be checked carefully, especially where group structure or linked enterprises matter.	Company-size basis and owner for legal or finance review.
Can AI inventory wait?	No. Inventory is the cheapest control to start and the easiest one to keep updated.	System name, owner, vendor, purpose, users, data, trigger flags.
Can vendor evidence wait?	No. Third-party AI features can create obligations before an internal team fully understands the system.	Vendor questions, supplier answers, follow-up owner, unresolved gaps.

Relief-readiness checklist

Build a lean evidence file in four steps

Step 1

Map the company basis

Record SME or SMC assumption.
Record employee, turnover, and asset basis if available.
Flag group-structure uncertainty.
Assign finance or counsel review owner.

Step 2

Keep the AI inventory alive

Name each AI system or AI-enabled feature.
Record owner, purpose, user group, and vendor.
Mark high-risk, Article 50, and prohibited-practice signals.
Log changes as the system evolves.

Step 3

Ask minimum vendor questions

Request intended purpose and instructions for use.
Request transparency and content marking information.
Request high-risk and product-integration position.
Record gaps and follow-up owners.

Step 4

Preserve the source note

State the current consolidated-law baseline.
Record the exact relief provision and eligibility assumption.
Update the record when facts, guidance or law change.
Keep the decision owner visible.

Related EU AI Compass routes

Open the next tool or guide

Omnibus Deadline Router

Route one AI system into the likely planning track.

SME Deadline Guide

Separate provisions already applicable from future statutory application dates.

AI System Inventory Template

Start the smallest practical evidence record.

Vendor Evidence Request Builder

Ask supplier questions before enabling or expanding AI features.

Digital Omnibus cluster

Use the cluster in the right order.

Start with the router, then open the guide that matches the planning track: standards readiness, product-integrated AI, or SME and small-mid-cap relief.

TOOL · 3 MIN

Omnibus Deadline Router

Separate current-law dates from 2026, 2027, and 2028 planning tracks for one AI system.

GUIDE · 5 MIN

Standards Readiness After the Omnibus

Build evidence structures that can absorb harmonised standards and common specifications when they arrive.

GUIDE · 5 MIN

Product-Integrated AI Systems and 2028

Connect AI Act planning with the product safety file, supplier evidence, and sectoral-law overlap.

GUIDE · 5 MIN · CURRENT PAGE

Small Mid-Cap Relief After the Omnibus

Treat SME and small-mid-cap relief as a planning issue, not an exemption from records.

FAQ

Frequently asked questions

Does the Digital Omnibus exempt SMEs or small mid-caps from the EU AI Act?

No. Regulation (EU) 2026/1744 extends specified SME measures to small mid-caps in limited provisions; it is not a blanket exemption. Use the current consolidated AI Act to verify the exact measure, eligibility conditions and application date, and keep the supporting evidence.

Did the 7 May 2026 SME and small mid-cap agreement become law?

Yes. Regulation (EU) 2026/1744 was published on 24 July 2026 and entered into force on 27 July 2026. Use the consolidated AI Act and verify the exact provision, eligibility criteria and application date before relying on targeted SME or small mid-cap relief.

What is a small mid-cap in EU simplification policy?

Regulation (EU) 2026/1744 defines small mid-cap enterprises for the AI Act by reference to the stated staff and financial thresholds. Verify the conditions and effect of each provision against the current consolidated text rather than applying the category as a blanket exemption.

What should a smaller organisation still document now?

Smaller organisations should still keep the AI system inventory, role decision, vendor evidence trail, Article 50 trigger note, prohibited-practice screen, training evidence, source-review log, and owner map. These records remain useful even if proportionality or relief changes the final burden.

Can an SME pause AI Act work because Regulation (EU) 2026/1744 moved some dates?

No. Pausing creates a documentation debt problem. SMEs should keep low-cost records now, especially inventory, vendor questions, user-facing transparency decisions, and dated source notes. These are practical records, not heavy enterprise governance programmes.

How should small mid-caps use the extra time now that the high-risk dates have moved?

Use the extra time to clean the inventory, assign owners, review vendor AI features, map high-risk and transparency triggers, and prepare a source-review log. The goal is to reduce uncertainty before the applicable statutory dates and before final standards or guidance are available.

Does this page determine whether my company qualifies as an SME or small mid-cap?

No. This page does not classify a company, confirm relief, or determine legal status. Company-size assessment can involve employee counts, turnover, assets, group structure, linked enterprises, and final legal text. Use professional advice before relying on a threshold operationally.

What should I do next after reading this page?

Run the Omnibus Deadline Router for one AI system, then create a small-organisation evidence note. The note should list the system, role, vendor, applicable deadline track, relief provision relied on, eligibility evidence, missing records, and the person responsible for keeping the file current.