The European Union has submitted a proposal for a digital omnibus regulation that aims to effectively change the EU’s approach to artificial intelligence and the data it stores. This AI regulation news comes as a bold move that will affect how AI works and is handled in the EU. It outlines rules for how organizations’ data is handled and gives individuals rights over their data.
With the rapid rise in Artificial Intelligence and how it interacts in the digital space, it becomes inevitable to address the challenges that come with the ever-changing landscape of AI. With the recent introduction of new digital reforms, this move is set to bring about changes in the way the European Commission handles matters related to AI. Moreover, with the recent geopolitical concerns relating to the US and China, it is planning to withdraw and change some of its rules that are arduous.
According to Henna Virkkunen, the European Commissioner for Tech Sovereignty, Security and Democracy, during a press conference at the Berlaymont building in Brussels. “The data union strategy’s main focus would be to provide the EU with quality data to reinforce the international data flow and help in building reliable AI.” Privacy, fairness, and security are the three major pillars on which the commission stands and pledges. The commission not only aims to establish an ideal platform for the protection of data, but also needs to pay attention to the improvement and stability of the data.
Proposed amendments to the GDPR
McGrath, the Commissioner for Economy and Productivity, Valdis Dombrovskis, and Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection, carefully pointed out that the data protection reforms are necessary amendments. It said the measures reflect “key rulings of the Court of Justice of the European Union, as well as the opinions of the European Data Protection Board”, as well as months of discussions with EU stakeholders.
In the area of advertising technology, the reforms also include sweeping changes to cookie banners that will allow users to express their actual choices and accept or decline cookies with one click. Following these mechanisms, organizations are required to respect users’ choices for six months.
For cybersecurity protection, the package proposes a single portal for organizations to notify of data breaches. This “single-entry point” will be “developed with robust security safeguards and undergo comprehensive testing to ensure its reliability and effectiveness.” Currently, organizations have incident-reporting obligations under several regulations, including the GDPR, Network and Information Security Directive, and the Digital Operational Resilience Act.
Access to data and data rights
The package also includes provisions to improve access to data to foster innovation by merging the four laws into one to increase legal certainty. It includes new guidance on complying with data law through “Model Contractual Terms and Conditions for Access and Use of Data, Standard Contractual Clauses for Cloud Computing Contracts,” and “Unlocking access to fresh, high-quality datasets for AI.” It also includes “targeted exceptions” to data law rules for moving to the cloud for small and medium-sized businesses.
Proposed changes to the AI Act
The EU AI Act news also includes several targeted changes, including simplifications for small and medium-sized businesses, such as reduced technical documentation requirements. Other measures include sandboxes for real-world testing and to strengthen the powers of the AI Office and centralize oversight of AI systems based on general-purpose AI models, thereby reducing governance fragmentation.
The proposed AI reforms were presented in a separate package to accelerate implementation timelines compared to the broader digital package.
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Differences from the leaked proposal
The proposal presented on November 19 is similar in many ways to previously published draft proposals. However, one controversial provision not included in Wednesday’s proposal concerns special categories of data.
A previously leaked version included a more targeted approach to special categories of data with more exceptions. According to Boardman’s assessment of the leaked draft, “data will only be considered special category data if it ‘directly reveals’ information about an individual’s racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, health, sexual life or activity.
Key takeaway
With the negotiations from the European Parliament and the Council of the European Union, the omnibus packages are stuck in the trilogy negotiation, and it’s gonna take some time or even months till the negotiations are settled.