Major Privacy Laws - Including GDPR - Could Be Downgraded to Try and Boost AI Growth and Cut Red Tape

Why It Matters

Easing GDPR could unlock larger data pools for European AI firms, potentially speeding innovation and market share, but it also risks eroding the continent's long‑standing privacy safeguards, sparking regulatory and political backlash.

Summary

New European documents indicate a forthcoming "digital omnibus" package, slated for a 19 November 2025 proposal, that could relax key GDPR provisions to accelerate AI development. The draft would permit AI firms to train models on categories of data now protected—such as political views, religion and health—by reducing protections for pseudonymized data and expanding legal grounds for user tracking. While Germany appears supportive, the Czech Republic, Estonia, France, Austria and Slovenia have voiced opposition, fearing a dilution of EU privacy standards. Regulators have already stalled AI rollouts from Meta, Google and OpenAI, prompting the Commission to consider these changes to boost competitiveness against the US and China.