The White House and European leaders do not often agree, but they are starting to find common ground regarding the deregulation of AI companies to stimulate further development. The European Commission, the EU’s executive branch, revealed plans on Wednesday to simplify its AI and privacy regulations. This move will impact two significant pieces of European tech legislation: the groundbreaking AI Act of 2024 and the General Data Protection Regulation (GDPR), a comprehensive law that transformed online privacy in 2018.
Regarding the GDPR, changes will involve relaxing data privacy rules to facilitate AI development. Tech firms will have more freedom under the proposed adjustments to utilize anonymized user data for training their AI models. The Commission emphasized the importance of high-quality data to fuel AI competitiveness in the global market and across various industries.
Additionally, the EU intends to update its cookie laws, which led to widespread cookie pop-ups globally. The proposed changes would allow users to store their cookie preferences in browsers, reducing the frequency of pop-ups. Similarly, revisions to the AI Act may involve postponing the enforcement of key provisions until industry standards are established.
Although these proposals are pending approval by the European Parliament, they aim to enhance European tech competitiveness and are just the initial steps in this direction. While it remains unclear how much influence the Trump administration’s pro-tech deregulation stance has had on the European Commission’s decisions, some connections have been drawn.
The former EU commissioner Thierry Breton highlighted similarities between transatlantic regulatory approaches and emphasized Europe’s resolve not to be intimidated by external pressure. President Trump has criticized EU regulations on American tech as “overseas extortion,” prompting opposition from Silicon Valley companies.
Meanwhile, AI companies in the US are also experiencing positive developments. Republicans are advocating for a moratorium on state-level AI laws, either through standalone legislation or as part of a broader bill like the National Defense Authorization Act. While there is uncertainty about whether this moratorium request will succeed due to concerns about potential implications for child safety regulations, Trump is reportedly considering an executive order to establish an “AI Litigation Task Force” targeting state laws hindering Big Tech’s AI progress.
Amid these developments, a pro-AI coalition is emerging with support from Senator Kyrsten Sinema and prominent industry players like Andreessen Horowitz, Cisco, Meta, Google, Microsoft, and energy companies. This coalition aims to defend and promote AI innovation while navigating complex regulatory landscapes.