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A&O Shearman: key divergences in AI Omnibus trilogue — LE carve-out scope a live issue

A&O Shearman analysis of the AI Omnibus trilogue details the remaining divergences between Council and Parliament positions. The Council adds carve-outs for law enforcement, border management, financial supervision and judicial processes from AI Office enforcement powers, and requires judicial authorisation for inspections. The Parliament limits carve-outs to sectoral legislation and critical infrastructure only. Both institutions support fixed delay dates and the nudifier ban. Final synthetic content watermarking timing remains an open point.