EU Proposes Regulatory Shifts for AI and Data Privacy, Potentially Impacting Tech Innovation
The European Commission is advancing plans to overhaul its digital regulatory framework, with proposed delays to high-risk AI rules and revisions to data privacy laws. Key changes include postponing enforcement of certain AI regulations until 2027 and narrowing the definition of personal data to facilitate broader AI training under "legitimate interest" provisions.
Cookie consent banners may be eliminated under the new proposals, shifting responsibility for tracking preferences to users. Privacy advocates have raised alarms that these modifications could erode digital rights protections across the European Union.
The regulatory pause aims to create breathing room for businesses adapting to compliance requirements, though critics warn of potential consumer protection gaps. Market participants are closely watching how these changes might affect technology development and data-driven innovation in the bloc.
