EU publishes Digital Omnibus leaving AI Act future uncertain

The European Commission unveiled amendments on Wednesday designed to simplify its digital regulatory framework, including the AI Act and data privacy rules, in a bid to boost innovation.

The Digital Omnibus package introduces several measures, including delaying the stricter regulation of ‘high-risk’ AI applications until late 2027 and allowing companies to use sensitive data, such as biometrics, for AI training under certain conditions.

High-risk AI applications include those in the field of biometrics, critical infrastructure, law enforcement, essential services, employment and administration of justice and democratic processes. Among the systems that could be classed as “high-risk” are biometric identification or categorization, as well as emotion recognition.

According to the AI Act, high-risk AI operators currently have significant regulatory obligations, including risk assessments. The simplification amendments would push the application of these stricter rules from August 2026 to December 2027.

Other changes to the AI Act involve exempting companies from registering AI systems in an EU database for high-risk systems if these are only used for narrow or procedural tasks.

The Digital Omnibus also attempts to adapt rules within privacy regulation, such as the General Data Protection Regulation (GDPR), the e-Privacy Directive and the Data Act.

The Commission plans to clarify when data stops being “personal.” This could open the doors for tech companies to include anonymous information from EU citizens into large datasets for training AI, even when they contain sensitive information such as biometric data, as long as they make reasonable efforts to remove it.

The amendments include measures aimed at simplifying business for tech companies, including cutting red tape for small and medium enterprises (SMEs) developing or using AI, which could potentially save 225 million euros (US$261 million) yearly. The Commission is also planning other administrative changes, such as the introduction of the European Business Wallet.

Germany and France back AI Act postponement but future uncertain

The proposed changes are a result of months of negotiations, which were marked by pressure from the administration of U.S. President Donald Trump and calls both from Big Tech companies and smaller startups.

EU member states have also called for postponing the rollout of the AI Act altogether, citing difficulties in defining related technical standards and the need for Europe to stay competitive in the global technological race.

“Europe has not so far reaped the full benefits of the digital revolution,” says European economy commissioner Valdis Dombrovskis. “And we cannot afford to pay the price for failing to keep up with demands of the changing world.”

The digital simplification plan has been backed by France and Germany. French minister for AI and digital affairs Anne Le Hénanff said on Tuesday that she supports the postponement of the AI Act as it comes with too many uncertainties, which are slowing innovation, Euronews reports.

Karsten Wildberger, Germany’s digital transformation minister, also supported postponement, adding that technological progress is moving too fast and rules must be continuously reworked.

“Let’s first build the products, and then take very seriously how these products work – that they are safe, that we have the right processes in place,” he says.

The new package has received backing from technology companies and organizations such as tech lobbying groups Computer and Communications Industry Association (CCIA), which include Alphabet, Meta, Amazon and Apple. The group has previously launched a campaign in favor of not just simplifying the AI Act but also other EU digital rules.

Earlier this year, the EU AI Champions Initiative, which brings together 60 European companies including Airbus, ASML, Siemens and Mistral AI, has also backed plans for postponement.

“The upcoming digital omnibus package and the digital fitness check must reflect a decisive pivot toward a more proportionate, innovation-friendly regulatory approach,” the group writes in an open letter to the European Commission.

The future of the package is still undecided. The new proposals would need to be approved by EU countries and members of the European Parliament.

Some MEPs have signaled their intention to vote against the proposal, accusing Big Tech companies of pouring record funds into lobbying against regulation. EU’s lead negotiator on the AI Act Brando Benifei called on the European Parliament on Tuesday to continue defending citizens’ digital rights, according to Reuters.

“It is disappointing to see the European Commission cave under the pressure of the Trump administration and Big Tech lobbies,” says Dutch MEP Kim van Sparrentak.

Last week, 127 civil society organizations and unions published an open letter, urging the European Commission to halt the Digital Omnibus, condemning the bloc’s attempts at deregulation.

“Unless the European Commission changes course, this would be the biggest rollback of digital fundamental rights in EU history,” says the letter. It is being done under the radar, using rushed and opaque processes designed to avoid democratic oversight..

Article Topics

AI Act  |  biometrics  |  data privacy  |  Europe  |  facial recognition  |  GDPR  |  legislation