The European Union is set to unveil plans on Wednesday to revise its AI and data privacy rules, following pressure from European and U.S. companies to simplify regulations and boost innovation.
The proposals, aimed at cutting red tape and helping European businesses compete with American and Chinese tech giants, will be presented by EU digital chief Henna Virkkunen alongside Justice Commissioner Michael McGrath, who oversees data protection.
Brussels has rejected claims that the regulatory overhaul is a response to pressure from the Trump administration, stressing that protecting citizens’ rights remains a priority. However, some EU states argue that heavy regulation has slowed innovation, prompting calls for a more business-friendly approach.
On Tuesday, Berlin hosted a Franco-German summit focused on Europe’s AI ambitions. French President Emmanuel Macron said Europe seeks to avoid becoming “a vassal” reliant on U.S. and Chinese technology.
The EU plans to propose changes to both its landmark data protection rules and the AI law, which only came into force last year. Draft documents indicate the package could include:
Redefining personal data usage to allow companies to process information for training AI models under “legitimate interest,” though critics warn this could weaken privacy protections.
A one-year pause on certain provisions for high-risk AI systems, such as those affecting safety, health, or fundamental rights, a move welcomed by European and U.S. firms.
Major European companies, including Airbus, Lufthansa, and Mercedes-Benz, had requested the AI law pause in July, citing concerns that strict rules could stifle innovation.
EU lawmaker Eva Maydell, from President Ursula von der Leyen’s conservative EPP group, supported simplifying digital rules, citing “excessive complexity and inconsistency” in existing legislation.
However, the proposals face hurdles. Any changes must be approved by the European Parliament and member states, and key coalition partners have voiced opposition. Socialist lawmakers have rejected any delay to the AI law, while centrists have pledged to block reforms that could compromise privacy.
The package is expected to spark debate over Europe’s balance between innovation, economic growth, and citizen privacy in the digital age.
