EU Accused Of Weakening AI And Data Rules After Pressure From Big Tech

The EU, which has gained somewhat of a reputation in recent years as a strict regulator when it comes to data and AI, seems to be softening – and it’s all thanks to big tech.

In an update called the Digital Omnibus, the European Commission has proposed delaying and softening parts of the AI Act, GDPR and other tech laws, a move that has been celebrated in Silicon Valley, but raised a lot of eyebrows here in Europe.

Spokespeople from the EU have said that these changes are more about making the rules simpler than reducing protection, but others say the EU has simply caved to big tech lobbying, driven by fears that Europe is falling behind in the AI race.

So, what has happened and what does it mean?

EU Delays AI Laws Till 2027

As part of the announcement, the EU has announced it will delay introducing parts of the AI Act till 2027, namely those that require companies to comply with high-risk AI laws. These laws were designed to protect consumers from AI that poses risks to health, safety and other rights, with the EU commission allowing companies 18 months longer to comply with the rules.

The Commission argued that the delay is fair because the standards needed for companies to comply with the laws aren’t ready yet. Many EU countries haven’t even set up their enforcement bodies yet, making it hard to track compliance.

However, critics have argued that the delay is simply a pandering to big tech companies and Trump’s government, who have been lobbying the EU to loosen their regulations.

New Rules Mean Companies Might Be Able To Use Personal EU Data To Train AI

Another big change that many are criticising is tech companies’ ability to use personal data to train their AI models. 

Under the new rules, companies would be able to use anonymised or partially anonymised data as long as the company using it can’t attach it to specific individuals. They could also use large health datasets as long as they make an effort to remove them.

This is a huge benefit for big tech companies, as they would be able to train their AIs on much bigger datasets. The problem? Anonymisation doesn’t always work and it could mean that these tech companies end up using people’s personal data without their consent.

A Benefit For SMEs

One of the reasons for these reforms is that the EU wants to prevent startups moving to places like the US, which have far less red tape for them to navigate.

These lower compliance requirements for SMEs could potentially save them 225 million euros a year, according to the Commission. In fact, the introduction of exemptions for small businesses and the creation of a ‘European Business Wallet’, which works across all EU member states, could save SMEs up to 150 billion euros per year in admin costs.

According to the Commission, the new rules are designed to help SMEs in Europe grow more easily, not to serve US big tech.

Has The EU Buckled Under Pressure From The US?

Whilst many have celebrated the announcement, some have criticised it, accusing the EU of moving backwards in its protection laws. Others argue that the EU has just buckled under pressure from big tech and Trump, in an effort not to be left behind in the AI race.

Unsurprisingly, the Commission has denied this, saying that its main aim is helping EU innovation grow. But the truth is that this is definitely a big win for Silicon Valley.

When Do The Rules Come Into Effect?

It’s important to note that right now, the proposals aren’t yet law. Before they are written into law, they need to first be approved by all 27 EU member states, as well as the European Parliament.

Whether it will go through or just lead to even more delays remains to be seen.

However, as Europe tries to keep up in the AI race, currently led by the US and China, less red tape could be a good thing. Whether it puts EU citizens’ data on the line and provides a good level of protection is another question, one I am sure the EU will be debating for years to come.