Facing US competition, EU suggests loosening AI, data rules

The EU said Wednesday it is considering streamlining artificial intelligence and data rules as part of a broader push to help European businesses keep up with US and Chinese rivals.

The European Union long heralded its legal arsenal on tech as an example for the world, but the tone has shifted since the return of US President Donald Trump.

Just weeks into his new role, Vice President JD Vance zeroed in on the rules as part of a broadside against the EU’s social and economic model, warning “excessive regulation” on AI in particular could kill the emerging sector.

Mindful that European businesses are also pushing back at rules they say are cumbersome and hurt innovation, the EU will look at “possible further measures to facilitate compliance and possible simplification of the AI Act,” the European Commission said.

While vowing that Brussels remained committed to the AI law, EU tech chief Henna Virkkunen said Brussels wanted to see if there was an “extra administrative burden” it could remove.

She noted it would not be “harming anyone if we cut some reporting obligations.”

Under the rules, companies offering high-risk AI systems must assess and mitigate the threats their models pose.

Unveiling measures to ramp up AI infrastructure in Europe as part of a new “AI Continent Action Plan,” the EU also raised the prospect of “streamlining existing data legislation.”

The aim, the commission said, would be “to reduce complexity and administrative burden and to ensure that data governance structures are efficient and effective.”

There was no direct reference to the mammoth data General Data Protection Regulation (GDPR), a major bugbear for companies around the world because of the compliance costs.

But Justice Commissioner Michael McGrath had previously indicated the GDPR would be subject to “simplification,” with an announcement expected in coming weeks.

It will be the latest in a deregulation drive after the EU’s rollback of environmental rules in February, as Europe pivots to bolstering competitiveness as its main priority.

© 2025 AFP