The European Parliament has given final approval to changes to the EU AI Act under the digital omnibus package. The reforms postpone several high-risk and watermarking deadlines to give companies legal certainty, reduce overlapping rules for machinery products, and extend SME-style exemptions to small mid-cap enterprises. Alongside the simplification measures, Parliament secured an outright ban on "nudifier" apps and AI systems that generate child sexual abuse material or non-consensual intimate imagery.