The European Union has announced a comprehensive strategy to slash digital red tape, aiming to strengthen its position in the global artificial intelligence race and support homegrown technology firms.
Key Reforms in the EU Digital Plan
According to a Wednesday statement from the European Commission, the executive body of the EU, the proposal includes several significant measures. It calls for delaying the implementation of rules governing high-risk AI systems by up to 16 months. The plan also seeks to simplify the procedure for reporting cybersecurity incidents and relax data protection regulations to make it easier to train AI models.
This initiative follows intense lobbying from European and American tech companies, the previous Trump administration in the US, and various EU member states. These groups have argued that the current regulations are overly burdensome and lack clarity. Critics consistently highlight that the bloc's AI rules are excessively complex and sometimes contradictory, raising concerns that Europe risks falling further behind technological leaders like the United States and China.
Leadership Support and Competitive Concerns
"By cutting red tape, simplifying EU laws, opening access to data and introducing a common European Business Wallet we are giving space for innovation to happen and to be marketed in Europe," stated the EU's technology czar, Henna Virkkunen. The Business Wallet is a new tool designed to help businesses and governments digitize tasks that currently require physical presence.
The proposal, which requires approval from European governments and lawmakers, marks the seventh such initiative in under a year. This is part of a broader deregulation campaign intended to stimulate the EU's sluggish economic growth.
Significant political backing has emerged from the leaders of the bloc's two largest economies. Both French President Emmanuel Macron and German Chancellor Friedrich Merz expressed support for elements of the plan during a digital sovereignty summit held in Berlin this week.
Implications and Background of the AI Act
While some parts of the AI Act are already active, the requirements for so-called high-risk AI systems are scheduled to take effect in August next year, unless this new proposal is approved.
The push for regulatory reform was strongly echoed in a widely referenced 2024 report on European competitiveness by former Italian Prime Minister Mario Draghi. He identified the EU's extensive digital rulebook as a major hindrance to the performance of local technology companies. Draghi subsequently advocated for a pause in the implementation of the AI Act, a call that appears to be influencing current policy directions.
