Germany: Act implementing EU Regulation on Artificial Intelligence (Draft Act 97/26) was submitted to Federal Council

On 13 February 2026, the German federal government submitted the draft Act to implement the Artificial Intelligence Regulation (No. 97/26) to the Federal Council (Bundesrat). This Act would establish a national supervisory framework for artificial intelligence. The Act would apply to providers and deployers of AI systems, including entities operating in regulated financial sectors. It would designate the Federal Network Agency as the primary market surveillance authority under the EU Artificial Intelligence Act (Regulation (EU) 2024/1689), as well as the single point of contact under Article 70 of the Act. It would also establish an independent AI Market Surveillance Chamber within the Federal Network Agency for high-risk AI systems used in law enforcement, border management, the justice system, and democratic processes. It would also designate the Federal Financial Supervisory Authority as the competent authority for AI systems connected to regulated financial activities. Additionally, the Act would establish a central Coordination and Competence Centre and require the Federal Network Agency to operate at least one AI regulatory sandbox. It would also grant the Agency powers to conduct on-site inspections and issue administrative fines of up to EUR 50'000 for specific procedural violations. The Act would also amend the Whistleblower Protection Act to include violations relating to the regulation of artificial intelligence and update the relevant provisions in the Social Code relating to data processing. The Federal Council is expected to respond by 27 March 2026. The Act would enter into force the day after its promulgation.