Expert: EU Commission wants an "unlimited special legal zone" for AI (www.heise.de)

The European Commission's proposed "digital omnibus" package has sparked significant backlash, particularly concerning Article 88c, which seeks to ease data processing requirements for AI applications. Legal experts from Spirit Legal warn that this could create an "unlimited special legal zone" for AI, allowing companies to broadly define what constitutes an AI system, potentially circumventing stringent GDPR protections. This shift could grant Big Tech increased latitude to exploit personal data, including sensitive information like health records, undermining long-standing privacy principles such as data minimization. The implications for the AI/ML community are profound, as the release of data protection standards may erode public trust in digital services. A recent survey indicates that a majority of consumers favor companies that comply with GDPR regulations, suggesting that any relaxation of these standards might harm the social acceptance of emerging AI technologies. Furthermore, the proposed rules may favor US tech giants over European firms, raising concerns about digital sovereignty and the long-term impact on consumer rights. With discussions ahead in the EU Council and Parliament, the road to finalizing the digital omnibus remains contentious, particularly given civil society's strong objections to perceived compromises on data protection.