The European Union is looking at loosening the shackles of its strict regulations around privacy to boost the development of artificial intelligence, according to documents obtained by Politico.
The bloc’s General Data Protection Regulation, or GDPR, touted as a global benchmark for data privacy, was created to protect citizens from tech industries that may exploit their data. The regulations have drawn sharp criticism from U.S. tech giants and investors, who argue that the rules risk undermining Europe’s competitiveness in the global race to develop artificial intelligence.
In response, the EU is preparing a series of revisions, collectively known as the “Digital Omnibus,” aimed at easing some of these concerns and adapting the framework to a rapidly evolving industry. Proposed amendments would introduce new exemptions allowing AI developers lawfully to process sensitive categories of data such as information on a person’s political or religious beliefs, ethnicity or health, for the purposes of training and operating their systems.
The European Commission also intends to revise the definition of these protected data categories, which currently enjoy enhanced safeguards under EU privacy law. In addition, officials plan to redefine what qualifies as personal data, suggesting that pseudonymized information – where identifiers have been obscured so individuals cannot easily be traced – may not always fall under the GDPR’s protections, reflecting a recent judgment by the EU’s highest court.
Lastly, the Commission aims to overhaul Europe’s cumbersome cookie consent framework by adding a new clause to the GDPR that would grant websites and apps broader legal grounds to track users, beyond the need for explicit consent. The plan, set to be unveiled on Nov. 19, is expected to ignite a storm of disagreement within the bloc.
According to the Financial Times, the Trump administration has been putting a heavy hand on European officials to simplify digital rules so that the bloc stays competitive with China. That will mean changes to the AI Act, which was introduced last year in an effort to combat the dangers of high-risk AI systems.
Companies such as Apple Inc., Meta Platforms Inc. and Google LLC warned that the rules could stifle innovation, echoed earlier this year by U.S. Vice President JD Vance, who said “excessive regulation” could cripple Europe’s emerging AI industry. European Commission President Ursula von der Leyen emphasized that “AI needs the confidence of the people and has to be safe,” while also recognizing worries about excessive regulation. “At the same time, I know that we have to make it easier and we have to cut red tape, and we will,” she added.
Photo: Unsplash
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