The European Union wants to amend the GDPR (General Data Protection Regulation) to stimulate AI development. A package of changes is intended to give companies more leeway to process sensitive data, while American pressure to simplify digital regulations is increasing.
The GDPR is considered the gold standard for data privacy worldwide, but investors and American tech giants have been complaining about its restrictions for years. The regulations are said to undermine Europe’s competitive position in AI. Now, the EU is preparing a “Digital Omnibus” with various amendments, according to Politico.
The proposed changes will enable processing sensitive data, such as political or religious beliefs, ethnicity, and health information, for training AI models. There will also be a new definition of what constitutes personal data. Pseudonymized data may no longer be covered by the current GDPR protection.
In addition, the Commission wants to tackle the cookie consent framework. This will give websites and apps more legal leeway to ‘track’ users without requiring explicit consent. These plans will be announced on November 19 and are already causing heated debate in the European Union.
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Pressure from America
According to the Financial Times, the US government is pressuring Europe to simplify digital rules. Competition with China also plays a major role in this. The AI Act, introduced last year to restrict high-risk AI systems, may also need to be revised.
Companies such as Apple, Meta, and Google have previously warned that excessive regulation could stifle innovation. US Vice President JD Vance also spoke out on this issue this year, according to SiliconAngle. He argued that “excessive regulation” could cripple Europe’s emerging AI industry.
Commission President Ursula von der Leyen acknowledges the tension. “AI needs people’s trust and must be safe,” she said.
Balance between safety and innovation
The EU faces a difficult balancing act. On the one hand, citizens’ privacy must be protected; on the other, Europe risks falling behind in the international AI race. The Digital Omnibus attempts to reconcile both interests, but it remains to be seen whether it will succeed.
Companies will soon have more freedom to use data for AI applications. Critics fear that this will come at the expense of the protection that the GDPR has provided for years. The coming months will reveal whether the EU can strike this balance.