The EU Digital Omnibus Regulation and the simplification shift

For years, privacy and compliance leaders have operated in a state of high-velocity adaptation. You have been the architects of trust in a landscape defined by regulatory fragmentation, frantically patching together compliance frameworks for the GDPR, the Data Act, and the looming EU AI Act. But on November 19, 2025, the European Commission signaled a massive strategic pivot, one that transforms your role from “firefighter” to “visionary.”

The Commission’s proposal for the EU Digital Omnibus Regulation is not just another layer of red tape; it is a corrective measure designed to “repair” the complex overlaps between the EU’s digital laws. By aiming to reduce regulatory burdens in the EU and boost competitiveness, this proposal acknowledges what you have known all along: true compliance requires clarity, not chaos.

For Data Protection Officers (DPOs), Chief Privacy Officers (CPOs), and security leads, this is a strategic inflection point. The rules are being rewritten to favor operational reality over bureaucratic rigidity. But do not mistake simplification for deregulation. The EU digital rulebook 2026 will be leaner, but sharper. The proposal offers you a rare commodity in our industry: time. The question is, will you use it to catch your breath, or will you use it to solidify your competitive advantage?

Major EU AI Act updates: Delays and red tape cuts

The original implementation timeline for the EU AI Act was a source of sleepless nights for many of you. The sheer velocity required to meet the 2026 deadlines for high-risk systems threatened to derail innovation budgets and force hasty, tick-box compliance. The Omnibus proposal fundamentally alters this trajectory with a mechanism designed to prioritize quality over speed.

The “stop the clock” mechanism

The most critical amendment in the proposal is the AI Act compliance deadline extension. The Commission has introduced a pragmatic “stop the clock” provision. Instead of a hard, arbitrary date, the compliance deadline for high-risk AI systems (Annex III and Annex I) will now be triggered only after the necessary harmonized standards are officially ready.

Specifically, the timeline shifts to 6 months (for Annex III) and 12 months (for Annex I) after the Commission confirms that the support tools and standards are in place. If those standards are delayed, your deadline moves with them, with a potential “long-stop” date pushing compliance out to late 2027 or even August 2028.

This high-risk AI obligations delay is a game-changer. It transforms a sprint into a marathon, allowing you to build robust, defensible AI governance frameworks rather than rushing to meet a deadline.

Relief for the “small mid-caps”

Previously, the SME designation was a narrow lifeline. The Omnibus proposes expanding this SME AI regime to include “Small Mid-Caps” (SMCs), companies with up to 499 employees and a turnover of up to €100 million. If your organization fits this profile, you may gain access to the same regulatory sandboxes and reduced penalties previously reserved for smaller players.

Reinforcing AI literacy: A clearer mandate

Instead of softening the rules, the Omnibus proposal doubles down on the importance of human oversight. The amendments reinforce the AI literacy obligation, clarifying that both providers and deployers must ensure their staff possesses the “sufficient knowledge, training, and contextual understanding” to manage these systems safely.

This is no longer a vague suggestion; it is a concrete compliance requirement. For you, this means your internal training programs cannot be generic “AI 101” courses. They must be tailored to the specific context of the AI tools you are deploying, ensuring your teams can effectively detect bias, interpret outputs, and challenge the machine’s decisions when necessary. The human-in-the-loop must be a competent human.

GDPR and privacy changes: The 96-hour rule and cookies

While the EU AI Act changes are headline-grabbing, the GDPR simplification proposal contained in the Omnibus offers the most immediate tactical relief for your daily operations. The Commission has finally addressed the incident response fatigue that burns out security teams.

The shift to a 96-hour reporting window

For nearly a decade, the 72-hour breach notification rule has been the golden, often grueling, standard. It forced teams to report incomplete information just to beat the clock. The Omnibus proposes extending this window to 96 hours (4 days).

The Omnibus proposal also seeks to align the reporting threshold for Data Protection Authorities (DPAs) with the higher bar currently used for individuals. Under the new text, you would only be legally mandated to report breaches that pose a high risk to individuals’ rights and freedoms.

On the surface, this change appears to “filter out the noise,” allowing your team to focus forensic energy on genuine, high-impact threats rather than administrative paperwork. However, this new latitude comes with a warning label. Privacy experts caution that ‘minor’ is subjective. Narrowing the criteria creates a blind spot where cumulative small-scale breaches could go unnoticed. Therefore, while your reporting volume may drop, your internal logging must remain rigorous to defend against accusations of underreporting later.

Solving cookie consent fatigue

We all know that the accept all banner blindness is real. The Omnibus attacks cookie consent simplification in the EU by proposing two major shifts:

Exemptions: Audience measurement and security cookies may no longer require active consent.

The “Do Not Re-Ask” Rule: If a user rejects consent, you cannot ask them again for six months. This forces a redesign of the user experience. You can no longer nag users into compliance; you must build trust so they want to opt-in.

Codifying the SRB case: A nuanced data definition

Perhaps the most intellectually significant change is the proposal to reflect the Single Resolution Board (SRB) case law within the GDPR’s framework. The text clarifies the boundaries of personal data, suggesting that if an entity holding data cannot reasonably identify the individual—taking into account all objective factors like costs, time, and available technology—it may not be personal data in their specific hands.

However, this is not a loophole; it is a high bar. It validates the relative approach to personal data but attaches strict conditions. To leverage this defense, you must demonstrate robust safeguards that effectively prevent re-identification, such as legal and technical barriers that make obtaining the “key” impossible. If you hold a pseudonymous dataset, you can’t just claim ignorance; you must prove that identifying the individual is practically unfeasible. This potential opening for data sharing and analytics exists, but only if your segregation of duties is legally and technically waterproof.

Streamlining incident reporting (the single entry point)

If you are managing compliance for a multinational, you are likely juggling reports for GDPR, NIS2, DORA, and the Cyber Resilience Act. It is a fragmented mess of portals and forms. The Omnibus proposes a solution that sounds too good to be true: a Single Incident Reporting Entry Point.

Managed by ENISA

The proposal mandates a centralized platform, operated by ENISA (the EU Agency for Cybersecurity), to serve as the clearinghouse for all major digital incident reports.

• Report once, share many: You submit one report regarding a cyber incident.
• Automated triage: The platform routes the relevant data to the DPA (for GDPR), the CSIRT (for NIS2), or the financial regulator (for DORA).

This ENISA incident reporting infrastructure is the technical backbone of the cross-border data enforcement strategy. It eliminates the risk of double jeopardy, where you report to one regulator but forget another, yet it increases transparency between regulators. If you report a breach to the financial regulator, the privacy regulator will know instantly. Your narrative must be consistent across all channels.

What DPOs and Privacy Counsels need to do now

The EU Digital Omnibus Regulation is a proposal with high political momentum. Waiting for the final text to be inked in the Official Journal is a strategy for followers, not leaders. Here is how you can pivot your DPO compliance updates 2026 strategy right now.

1. Don’t pause, pivot

The High-risk AI obligations delay is not a permission slip to stop your AI governance program. If you pause now, you lose momentum. Instead, use this time to deepen your testing. Move from compliance checking to safety engineering. Use the extra 12+ months to stress-test your AI models against the draft harmonized standards. When the deadline finally hits, you won’t just be compliant; you will be unassailable.

2. Review your “small mid-cap” status

Work with your finance and legal teams to determine if you fall under the new “Small Mid-Cap” definition (up to 499 employees, €100M turnover). If you do, your digital legislation compliance burden for the EU AI Act just dropped significantly. Re-evaluate your vendor contracts. If your vendors are SMCs, they might have different obligations than you expected.

3. Update your incident response playbooks

Do not change your official policy to 96 hours yet; the law hasn’t passed. However, draft the “Version 2.0” playbook now.

• Plan for high risk: Define exactly what “high risk” means for your organization to justify not reporting minor breaches under the new rules.
• Prepare for ENISA: Ensure your CISO and Privacy Office are speaking the same language. When the single portal opens, the “security” report and the “privacy” report are the same report. Inconsistencies will be flagged immediately.

4. Audit your data flows for the SRB defense

Look at your data lakes. Are there datasets you treat as personal data simply because someone else has a key? Under the new EU proposals for reducing regulatory burden, you may be able to reclassify that data if you can prove that you have no means of re-identification. This could drastically reduce your GDPR exposure.

Navigating DPO compliance updates 2026 in a new era

The EU Digital Omnibus Proposal is an acknowledgment that the first era of digital regulation (the era of move fast and regulate things) is over. We are entering the era of maturity.

For the privacy professional, this is your moment of ascension. You are no longer the person who says no because of a deadline. You are the strategist who says yes because you understand the landscape. You have the tools, you have the knowledge, and now, you finally have the time.

The EU digital rulebook 2026 is not a cage; it is a framework. And in the right hands, a framework is a ladder.

Are you ready to map these changes to your 2026 budget?

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The European Union (EU) has long been a global leader in establishing robust data privacy laws, creating what many refer to as the “Brussels Effect”—a phenomenon where EU regulations influence global standards. For instance, GDPR inspired similar legislation in over 120 countries, demonstrating the EU’s far-reaching impact on international data privacy norms.

With the GDPR setting a high bar for data protection in 2018, the EU continues to shape the future of privacy governance, particularly in the face of burgeoning artificial intelligence (AI) technologies.

This article explores how the GDPR and recent EU laws like the AI Act and Digital Operational Resilience Act (DORA) are advancing the need for comprehensive data governance and privacy, what’s next for AI and data processing, and how to incorporate these developments into your 2025 privacy roadmap.

GDPR and the AI Act: Raising the stakes for data privacy

Since its enforcement in 2018, the GDPR has been the gold standard for data privacy. Its transparency, accountability, and individual rights principles have set a benchmark for global privacy laws. However, the rapid evolution of AI technologies has prompted the EU to establish the AI Act, which went into force in August 2024. This act aims to regulate AI systems based on their risk to individuals’ fundamental rights, health, and safety.

The AI Act employs a tiered, risk-based approach, prohibiting certain high-risk applications like social scoring and real-time biometric identification in public spaces. For high-risk AI systems, the act mandates:

• Risk management systems
• Transparency measures
• Data governance practices
• Human oversight mechanisms

Organizations deploying AI must align these requirements with GDPR obligations, creating a dual compliance framework that demands robust data protection measures and clear documentation of AI system processes.

AI governance: What’s next?

The AI Act introduces timelines for phased compliance, with most provisions taking effect by August 2026. Notable upcoming requirements include:

• AI literacy initiatives to ensure users and developers understand AI risks and benefits.
• Codes of Practice for General Purpose AI (GPAI) to be finalized by May 2025.
• Governance structures for systemic-risk AI models, emphasizing testing, risk assessments, and adversarial evaluations.

Additionally, the EU is exploring supplemental rules to harmonize procedural aspects of the GDPR, potentially improving cross-border enforcement and cooperation among data protection authorities (DPAs).

Want a deeper dive into how these EU developments fit into the bigger global privacy picture? Check out The Data Privacy Professionals’ Guide to Thriving in 2025 for practical strategies that extend beyond borders and get your entire program future-fit.

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New frontiers in data governance: The EU Data Act, DORA, and NIS2

The EU Data Act

Effective September 12, 2025, the EU Data Act introduces new rules for data access, sharing, and portability, particularly for connected devices and the Internet of Things (IoT). Unlike the GDPR, which focuses on personal data, the Data Act encompasses both personal and non-personal data, fostering innovation while addressing business-to-business (B2B) and business-to-government (B2G) data sharing.

Key obligations under the Data Act include:

• Providing users access to their generated data: This includes both personal and non-personal data, as well as metadata produced by connected devices, ensuring individuals can retrieve and manage their data.
• Ensuring data portability between service providers: Companies must facilitate seamless data transfers, enabling users to switch providers without data loss or excessive delays.
• Establishing safeguards for intellectual property and trade secrets: Organizations are required to implement protections that balance data accessibility with the need to secure proprietary information and sensitive business details.

The Digital Operational Resilience Act (DORA) and NIS2 Directive

Effective January 17, 2025, DORA targets the financial sector by creating a comprehensive information and communication technology (ICT) risk management framework. Alongside DORA, the NIS2 Directive introduces stringent cybersecurity requirements for essential entities across sectors like energy, healthcare, and transport, significantly broadening the EU’s cybersecurity landscape. It emphasizes:

• Incident reporting within 24 hours of identification.
• Regular resilience testing to assess readiness.
• Stringent third-party risk management.

Failure to comply with DORA or the NIS2 Directive can result in substantial penalties. For example, non-compliance with DORA can result in fines of up to 10 million euros or 2% of annual global turnover, underscoring the financial implications of non-compliance. The NIS2 Directive mandates strict incident reporting within 24 hours and imposes penalties proportionate to the gravity of the cybersecurity breaches, further emphasizing the need for robust frameworks.

Insights from recent papers and opinions

The Hamburg Commissioner’s paper on Large Language Models and Personal Data

This paper highlights a crucial distinction: while large language models (LLMs) process personal data during training, storing such models does not necessarily constitute ongoing data processing under GDPR. This interpretation underscores the need for organizations to demonstrate accountability in training and deploying AI systems.

EDPB Opinion 28/2024 on Processing Personal Data in the Context of AI Models

The European Data Protection Board (EDPB) emphasizes rigorous evaluation of AI systems trained on personal data. To demonstrate compliance, organizations must document every step, including Data Protection Impact Assessments (DPIAs).

CIPL: The Limitations of Consent as a Legal Basis for Data Processing in the Digital Society

The evolving digital landscape challenges the scalability of consent as a lawful basis for data processing. Recent discussions from the Center for Information Policy Leadership (CIPL) suggest that legitimate interest, with safeguards like opt-outs, may offer a more practical alternative for training AI models.

Watch as privacy experts discuss these papers in Data Privacy in the EU: What You Need to Know.

Building your data privacy 2025 roadmap

To remain compliant and competitive, privacy and compliance professionals must proactively adapt to the EU’s evolving legal landscape. Here are critical steps to include in your 2025 roadmap:

1. Enhance data mapping and scoping

While data mapping has been a cornerstone of GDPR compliance, organizations must expand their efforts to include metadata and information generated by AI and connected devices. Identify high-risk AI applications and map their data flows to ensure compliance with GDPR and the AI Act.

Revisit your data inventories to include non-personal data covered under the Data Act. The Data Act’s requirements for data portability and access add layers of complexity to traditional data governance.

2. Strengthen AI governance

Develop and implement policies for AI risk management, transparency, and accountability. Include provisions for human oversight and ethical considerations in AI deployment.

3. Update policies and contracts

Review and update your privacy policies, data-sharing agreements, and third-party contracts to reflect new obligations under the Data Act and DORA.

4. Invest in training

Train your teams on AI literacy and emerging regulatory requirements. Ensure all employees understand their roles in maintaining compliance and mitigating risks.

5. Prepare for regulatory changes

Monitor updates from EU institutions, such as the European Data Protection Board (EDPB), the EU Commission, and individual DPAs. Stay informed about new procedural rules for GDPR enforcement and guidance on AI compliance.

The “Brussels Effect”: A call to action

The EU’s legislative agenda underscores its commitment to safeguarding individual rights while fostering innovation in a digital age. For businesses operating in or engaging with the EU, this means embracing a proactive, governance-driven approach to privacy and AI compliance.

Incorporating the GDPR, AI Act, Data Act, and DORA into your 2025 strategy will help you navigate the complexities of European data privacy laws. This proactive approach ensures compliance and builds a resilient, future-ready organization.

The EU’s regulatory framework may seem like uncharted space, but with the right tools and mindset, you can boldly go where no compliance program has gone before.

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Comply with consumer rights

Global data transfers can be tricky due to different regulations and individual protections in each country. Sharing data with vendors has become such a normal part of business operations that some may not even realize they’re conducting a cross-border data transfer!

The Global CBPR Forum launched the new Global Cross-Border Privacy Rules framework in May 2024 to ensure that privacy compliance and regulatory differences across participating jurisdictions do not block a business’s ability to deliver its products and services worldwide.

To benefit consumers and businesses, Global CBPRs promote trust and accountability while moving toward a future where consumer privacy is honored and data can be transferred responsibly across borders.

This webinar will review:

• What is a data transfer and its related risks
• How to manage and mitigate your data transfer risks
• How do different data transfer mechanisms like the EU-US DPF and Global CBPR benefit your business globally
• Globally what are the cross-border data transfer regulations and guidelines

Four years after Brexit, the UK’s data protection laws are being reviewed by the UK Government again – mostly to ensure it can govern data rights in the country under UK law, rather than deferring to EU law.

There is some urgency among UK lawmakers to drive these changes since the Retained EU Law (Revocation and Reform) Act 2023 became law on January 1, 2024, removing some post-Brexit obligations under European Union law as applied to the UK GDPR and UK Data Protection Act.

The UK Department for Science, Innovation and Technology (DSIT) highlighted this change in its draft Data Protection (Fundamental Rights and Freedoms) (Amendment) Regulations 2023, published on September 11, 2023.

In its explanatory note accompanying the draft, DSIT stated the regulations will:

• “revoke and replace Article 4(28) of the UK General Data Protection Regulation and section 205(1A) of the Data Protection Act 2018 which relate to the meaning of references to fundamental rights and fundamental freedoms in data protection legislation”; and
• “insert new definitions of fundamental rights and fundamental freedoms into the UK GDPR and DPA 2018 so that after the end of 2023 … [these references] … will be references to rights under the European Convention on Human Rights within the meaning of the Human Rights Act 1998.”

UK Data Protection laws in the 21st century

The UK Government has enforced data privacy and protection under three main sets of laws this century:

1. Privacy and Electronic Communications Regulations 2003, which came into force on December 11, 2003, and focus on data confidentially and the consequences of data breaches.
2. UK General Data Protection Regulation (UK GDPR), which became law on April 27, 2016, a few months after the introduction of the EU General Data Protection Regulation (EU GDPR) and became applicable on January 1, 2021. The UK GDPR mostly reflects fundamental personal data rights covered in the EU GDPR, though narrows their application to UK-based organizations and organizations outside the UK that process UK citizens’ personal data.
3. UK Data Protection Act 2018 (DPA), which replaced the UK’s original DPA (passed in 1988, updated in 1998) and augments UK citizens’ privacy rights under GDPR with stronger rules around specific categories of personal information such as ethnic background, political opinions and health.

Amendments to data protection laws in the UK are being reviewed by Parliament under a proposed bill titled Data Protection and Digital Information Bill (No.2).

Bill to amend UK GDPR intends to ‘cut paperwork’

The UK Parliament’s Data Protection and Digital Information Bill (No.2) is the second recent attempt in the UK Parliament to bring data rights under UK law, rather than EU law.

The original version of the Data Protection and Digital Information Bill was introduced in the House of Commons on July 18, 2022, and stalled for several months.

That proposed Bill was then withdrawn so the updated version could be introduced on March 8, 2023.

Later that day, the UK Information Commissioner Office issued a press release about the Data Protection and Digital Information Bill (No.2) headlined “British Businesses to Save Billions Under New UK Version of GDPR”, with the subheading promising “New data laws to cut down pointless paperwork for businesses and reduce annoying cookie pop-ups”.

While there is a proposal to reduce some requirements for cookie consent pop-ups, the Bill also proposes tougher penalties for ‘nuisance’ calls and texts up to £17.5 million or 4% of global turnover, whichever is greater.

UK Information Commissioner John Edwards said he welcomed the reintroduction of the Bill and supported its ambition “to enable organizations to grow and innovate whilst maintaining high standards of data protection rights”, adding “data protection law needs to give people confidence to share their information to use the products and services that power our economy and society”.

On the later aim – to give people the confidence to share their information – the Bill contains a commitment to establish a digital verification service framework so individuals can more easily and safely prove their identity digitally, and thus speed up their interactions with organizations.

Further amendments to the Data Protection and Digital Information Bill (No.2) were proposed in November and December 2023. Edwards released new commentary on the Bill on December 19, 2023.

He continues to seek changes to the text such as:

• improving several definitions, particularly for activities considered ‘high-risk processing’;
• greater independence for the ICO (“namely removing the Secretary of State approval over statutory ICO codes”);
• updating rules about the ICO’s activities to allow the Office to serve information, enforcement and penalty notices electronically;
• extending the reporting period for personal data breaches under Privacy and Electronic Communications Regulations from 24 to 72 hours (aligned with UK GDPR);
• tightening rules around processing data when used for government audits or investigations of individuals, especially related to tax and social security – Edwards notes stronger safeguards are needed to protect individuals against arbitrary interference with their rights; and
• clarifying rules for businesses responding to subject access requests to reduce ‘vexatious’ requests and organizations only need to run ‘reasonable and proportionate searches’.

Overview of key proposed amendments to UK GDPR

The UK Information Commissioner’s Office media releases state the Data Protection and Digital Information Bill’s proposed amendments to UK data protection laws will “introduce a simple, clear and business-friendly framework that will not be difficult or costly to implement”.

The intents and claims for these amendments are summarized below.

1. Simpler UK GDPR compliance

Proponents of the amendments claim they will ‘cut pointless paperwork’ in current UK data protection laws by giving organizations more flexibility over how they meet compliance requirements. The changes especially target reporting requirements under UK GDPR, which the Information Commissioner’s Officer noted were based on the existing EU GDPR’s “highly prescriptive, top-down approach to data protection regulation which can limit organizations’ flexibility to manage risks and places disproportionate burdens on small businesses.”

However, there is a caveat: organizations will need to appoint a member of senior management as ‘Senior Person Responsible’, a role which effectively replaces the previously required role of Data Protection Officer.

Claimed benefits: organizations will only need to maintain records of processing activities for personal data if those processing activities “pose high risks to individuals’ rights and freedoms”.

2. Continued compliance for international data transfers

The ICO states the reforms are also intended to ensure the UK maintains data adequacy with the EU and build international confidence in the UK’s data protection standards to support “the free flow of personal data between like-minded countries”.

Claimed benefits: businesses operating in the UK that are already compliant with existing UK data laws will be allowed to continue using their existing international data transfer mechanisms to share personal data overseas. The ICO says “This will ensure British businesses do not need to pay more costs or complete new checks to show they’re compliant with the updated rules”.

[See section below: UK-US Data Bridge: International Data Transfer Adequacy]

3. Permitted processing of personal data without consent

Organizations have always had to weigh their interests in collecting personal data against individuals’ privacy rights; the amendments provide some leeway for the collection of personal data if the insights from that data are in the public interest.

Claimed benefits: organizations may collect personal data without needing consent where they can prove collection and sharing of that data is necessary to “prevent crime, safeguard national security or protect vulnerable individuals”.

4. Broader definition of scientific research

The ICO states “current data laws are unclear on how scientists can process personal data for research purposes, which holds them back from completing vital research that can improve the lives of people across the country”. The new Bill proposes an updated definition giving commercial organizations similar freedoms as academics to collect and use/reuse data for scientific research.

Claimed benefits: the Bill proposes reducing paperwork and legal costs for researchers, which the ICO claims will “encourage more scientific research in the commercial sector”. The new Bill contains a non-exhaustive definition of scientific research which remains any processing that “could reasonably be described as scientific and could include activities such as innovative research into technological development”.

5. Safeguards applied to AI

The ICO notes the current data protection laws in the UK are “complex and lack clarity for solely automated decision-making and profiling which makes it difficult for organizations to responsibly use these types of technologies”. The new Bill clarifies rules for businesses using automated decision-making. It includes requirements for businesses to make people aware they may be subject to automated decisions, explain the reason/s for processing, and notify them of their rights, including rights to “challenge and seek human review when those decisions may be inaccurate or harmful”.

Claimed benefits: the ICO says these updated rules will “Increase public and business confidence in AI technologies”, while giving businesses, AI developers, and individuals “greater clarity about when these important safeguards for solely automated decision-making must apply”.

Amendments focused on national security

A UK Government press release published on November 23, 2023, claimed a handful of proposed changes to the Bill “will safeguard the public, prevent fraud, and unlock post-Brexit opportunities”.

The main changes sought by the Government are:

• Access to targeted individuals’ financial activities data – giving government agencies new powers to require data from third parties (such as banks and other financial institutions), which could be used to help identify fraud; and
• Retention of targeted individuals’ biometrics data – allowing national security agencies (such as Counter Terrorism Police) to keep for longer the biometric data of individuals identified by an agency as ‘posing a potential threat to national security’. This update brings retention of biometric data such as fingerprints in line with INTERPOL’s data retention rules.

Although the UK GDPR isn’t being revoked by the Retained EU Law Act, it will be more tightly interpreted through UK case law, rather than EU case law.

In the EU, while each member state can pass legislation permitting some exemptions to personal data rights in cases of national security, the EU GDPR contains stronger safeguards for individual rights versus government organizations’ interests.

The proposed changes to UK data privacy and protection law generally keep many of the UK GDPR’s data protection principles that apply to all organizations processing personal data in the UK.

When the UK GDPR came into effect it carved out greater national security exemptions from some data protection rules around the collection, processing, and use of personal information than those allowed under the EU GDPR.

These carveouts for intelligence services, immigration control, and national security effectively limit personal data rights for citizens when government organizations choose to apply them.

UK-US Data Bridge: International data transfer adequacy

The UK extension to the EU-US Data Privacy Framework came into force on October 12, 2023, which allows certified organizations in the US to transfer the personal data of UK citizens more readily. It replaces previous requirements for safeguards such as international data transfer agreements or contract clauses.

The UK-US Data Bridge was established on September 21, 2023, by the UK Secretary of State for Science, Innovation, and Technology, the Rt Hon Michelle Donelan MP. The Secretary for State also laid adequacy regulations in Parliament, supported by the US Attorney General’s decision on September 18, 2023, to designate the UK as a ‘qualifying state’.

To use the UK-US Data Bridge organizations must prove compliance with UK GDPR rules on the protection of UK citizens’ personal data and gain certification to the Data Privacy Framework (DPF) list.

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• Verified seal to show the organization has met compliance requirements and is committed to protecting personal data and privacy.

Passed in March 2024, the European Union’s Artificial Intelligence (AI) Act aims to ensure consumer rights are safe and AI applications are ethical without placing undue burden on businesses.

Artificial intelligence is part of our daily lives, transforming industries from healthcare to entertainment, transport to education. Streaming services can use algorithms to suggest playlists and create personalized content; AI-powered digital assistants set reminders and help manage daily tasks; online shopping systems provide recommendations based on digital history; and AI helps identify patterns of fraudulent activity in banking transactions, among many other applications.

Artificial intelligence can help personalize, target, recognize and predict information. In many ways, it’s a huge asset to businesses and society in general and helps us solve many problems. But as AI becomes smarter and smarter, it also brings challenges, particularly when it comes to privacy, fairness, ethics, accountability, and safety.

While most AI systems will pose low to no risk, certain AI systems create risks that need to be addressed to avoid undesirable outcomes.

Setting the AI standard

The European Union has always been a trendsetter regarding privacy laws, establishing the General Data Protection Regulation (GDPR) – the toughest privacy and security law in the world – in 2018. Several countries and individual U.S. states have followed suit since.

Now, in the face of booming AI applications, the European Union has established the AI Act, passed in the European Parliament on 13 March 2024, becoming the first legislation of its kind in the world.

“Europe is NOW a global standard-setter in AI,” Thierry Breton, the European commissioner for internal market, wrote on X (formerly known as Twitter).

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What is the EU AI Act?

The EU AI Act is the first-ever legal framework on artificial intelligence, which addresses the risks of AI and positions Europe to play a leading role globally. It sets out strict requirements for both AI developers and deployers and aims to reduce the burdens to businesses while respecting fundamental rights, safety, and ethical principles.

Key principles of the EU AI Act include:

1. Human-centric approach: The AI Act puts humans at the center of AI development and use. It emphasizes that AI systems should be designed to serve the best interests of people and society as a whole.
2. Transparency: This is crucial for building trust in AI. The act requires that AI systems be transparent in their operations, meaning that users should be aware when they are interacting with an AI system, and they should understand how it works.
3. Accountability: When something goes wrong with an AI system, there should be someone responsible. The AI Act introduces the concept of ‘provider accountability’, meaning that the individuals or organizations developing, deploying, or operating AI systems are held responsible for their actions.
4. Safety and security: AI systems must be safe and secure for users and the broader public. The AI Act sets requirements for risk management, data quality, and cybersecurity to ensure that AI systems do not pose undue risks.
5. Data governance: Data is the lifeblood of AI. The act establishes rules for the quality and governance of data used to train and operate AI systems, with a focus on protecting personal and sensitive information.

How does the EU AI Act work?

The AI Act divides tech into various categories of risk. The riskier the AI application, the more scrutiny it faces.

The levels of risk are:

• Minimal risk: Think AI-enabled video games or filters, content recommendation systems, spam filters… It’s expected the vast majority of AI applications will fall into this category.
• Limited risk: Risks associated with a lack of transparency in AI usage. For example, letting humans know they are working with machines when using chatbots, and identifying AI-generated content to providers.
• High risk: Tech used in critical infrastructure, essential services, educational training, law enforcement, voter behavior, administration of justice, migration and border control, among others. AI systems will always be considered high-risk if they perform profiling of humans.
• Unacceptable risk: This includes AI systems considered a threat to safety, for example from social scoring by governments to emotion recognition, untargeted ‘scraping’ of the internet for facial images, and toys using voice assistance that encourage dangerous behavior. These will be banned.

How do I know whether an AI system is high-risk?

The AI Act clearly defines what it considers to be ‘high risk’, and sets out a solid methodology that helps identify these systems within the legal framework. Given that this is a constantly and fast-evolving industry, the European Commission has stated that it will ensure what is on this list is updated regularly.

Who does the EU AI Act apply to?

The EU AI Act covers a broad spectrum of AI systems, ranging from simple chatbots to sophisticated autonomous vehicles. This legal framework extends its reach to both the public and private sectors within and beyond the EU borders, provided that the AI system is introduced into the Union market or its usage impacts individuals within the EU.

It pertains to both providers, such as developers of screening tools, and deployers of high-risk AI systems, like a bank acquiring said screening tool. Additionally, importers of AI systems must ensure that the foreign provider has completed the necessary conformity assessment process, bears a European Conformity (CE) marking, and is accompanied by the requisite documentation and usage instructions.

Providers of free and open-source models are mostly exempt from these requirements. Furthermore, the obligations do not cover research, development, and prototyping activities conducted before market release. Additionally, the regulation excludes AI systems intended solely for military, defense, or national security purposes, regardless of the entity carrying out these activities.

What does compliance with the EU AI Act involve?

For organizations developing or using AI systems within the EU, compliance with the EU AI Act means adhering to its requirements and following specific procedures.

Some aspects of compliance include:

• Documentation and transparency: Organizations must keep detailed documentation on their AI systems, including how they work, their purpose, and potential risks. They also need to ensure transparency in their communication with users about AI involvement.
• Risk assessment and mitigation: High-risk AI systems require thorough risk assessments to identify potential harms. Organizations must implement measures to mitigate these risks and ensure the safety and rights of individuals.
• Data protection and privacy: Compliance with existing data protection regulations, such as the GDPR, is essential. Organizations must handle personal and sensitive data ethically and securely.
• Testing and quality assurance: Before deploying AI systems, organizations need to conduct rigorous testing to ensure they operate as intended and meet safety standards. Ongoing monitoring and updates are also necessary.

Need a practical way to validate that your AI system meets EU AI Act requirements? Download our Testing Artificial Intelligence (AI) Systems Template to help structure your assessments, track compliance steps, and ensure your AI applications are safe, transparent, and aligned with regulatory expectations.

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Does the European AI Act impact the rest of the world?

The main goal of the new EU AI Act is not just to promote trustworthy AI within Europe, but also to spread this standard globally, ensuring that all AI systems uphold fundamental rights, safety, and ethical practices.

In China, companies are required to obtain proper approvals before offering AI services.

On the other hand, the United States is still developing its approach to regulating AI. Although Congress is considering new laws, some cities and states in America have already passed their regulations. These laws restrict the use of AI in various areas, such as police investigations and employment practices.

One of the most notable? Utah’s AI Policy Act. The first state-level law in the U.S. to tackle generative AI head-on. With disclosure requirements, an AI sandbox program, and a newly formed Office of AI Policy, it’s quickly becoming a model for future regulation across the country. Get the full breakdown of Utah’s groundbreaking AI law.

How will the EU AI Act be enforced?

Implementing the EU AI Act comes with its challenges, including the need for resources, expertise, and ongoing monitoring. Additionally, as AI technologies evolve, the regulations will need to adapt to address emerging risks and opportunities.

For now, European Member States play a crucial role in making sure regulations are followed and enforced. To do this, each Member State needs to choose one or more national authorities to oversee how the rules are applied and put into action. These authorities will also be in charge of keeping an eye on the market to make sure everything is working as it should.

To make things smoother and have an official contact point for the public and others, each Member State will pick one national authority to supervise everything. This authority will also represent the country in the European Artificial Intelligence Board.

For extra knowledge and advice, there will be an advisory group made up of different kinds of people, like those from the industry, small businesses, civil society, and universities.

Additionally, the Commission will create a new European AI Office inside itself. This office will watch over AI models that are used for general purposes. It will work closely with the European Artificial Intelligence Board and will have support from a group of independent experts with scientific knowledge.

How will the EU AI Act impact innovation?

While the EU AI Act introduces new responsibilities and regulations, it also aims to foster innovation and competitiveness within the EU. By providing a clear framework for ethical AI development, businesses can build trust with consumers and investors, leading to greater adoption of AI technologies.

When does the EU AI Act come into force?

The European Union’s AI Act was adopted by the European Parliament in March 2024 and went into force on August 1, 2024. And implementation of the AI Act will then be staggered from 2025 onward.

For example, the majority of the rules of the EU AI Act don’t start until August 2, 2026. However, a ban on prohibited AI systems takes effect on February 2, 2025. Additionally, general-purpose AI model rules will apply starting August 2, 2025.

What are the implications of breaking the EU AI Act?

Non-compliance with the rules can lead to fines ranging from 35 million euros or 7% of global turnover to 7.5 million or 1.5 % of turnover, depending on the infringement and size of the company.

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Google is introducing significant changes to the way its advertising and analytics products operate across EEA and UK markets. Utilizing a Google CMP (Consent Manager Platform) partner ensures best practices are followed to maintain functionality.

Starting March 2024, Google’s “EU Consent Mode V2” is mandatory for certain Google products ensuring users’ consents are collected before being able to utilize certain functionality in Google’s products.

What’s the history of Google Consent Mode V1 and V2?

The EU Google Consent Mode V1 was optional and was first introduced in 2015 to improve compliance with data privacy laws for advertising purposes. It included a revision of how Google tracks and optimizes data for programmatic advertising strategies.

The EU Google Consent Mode V2 is now required for tracking and using a Google-certified Consent Management Platform (CMP) ensures that your experience follows best practices. Google tracking takes place only when consent has been given via the enabled Google Consent Mode consent manager experience. It is important to ensure that the configurations and implementations of your consent experience are accurate with your Google Tag Manager.

TrustArc’s knowledgeable and highly skilled Technical Account Management team can ensure that your TrustArc Google Consent Mode experience is correctly configured and functioning as intended for compliance and optimal advertising experience.

How does Google Consent Mode work?

Google Consent Mode can be deployed on a site in one of two methods – a Basic or Advanced deployment. With a Basic deployment, Google Tags are not fired until the user opts in. With an Advanced deployment, Google Tags continuously fires cookieless pings until consent is given. You can learn more in Google’s documentation here.

Who is impacted by the mandatory EU Google Consent Mode V2 requirement?

Organizations deploying cookies or trackers for behavioral or targeted ad marketing/ remarketing in Europe should pay attention! This impacts organizations using Google tools: all Google Ad Services (Ad Mob, Ad Serve, Ad Manager), Google Analytics, and Google Tag Manager.

What is the impact?

Organizations not using Google Consent Mode V2 will experience measurement loss affecting marketing campaigns. Impacting all your advertising activities, campaign optimization, and conversion metrics.

Why the change?

Google has made an important change to its advertising tools, including Google Ads. The Consent Mode will become mandatory for all users starting from March 2024. Companies utilizing Google Ads will need to implement Google Consent Mode to avoid the blocking of personalized ads such as remarketing. In the future, Google plans to block conversion tracking as well for those who don’t comply.

What are the benefits of using a Google Consent Manager Platform (CMP) partner?

You can rest assured that you provide the best advertising experience while meeting all technical requirements with Google. Save time with codeless implementation, and know that your CMP partner is continuously upgrading integrations to Google’s latest standards.

TrustArc Support

As a certified Google CMP Partner, TrustArc provides a dedicated support path for Google Consent Mode and certification-related inquiries. This includes:

• A specialized support email google-consent-mode@trustarc.com that you can use for any issue related to Google Consent Mode v2, or integration verification.
• For customers with a managed service or with Cookie Consent Manager Advanced, we provide direct access to a Technical Account Manager (TAM) trained in Google’s CMP certification criteria.
• An option to directly contact Google’s CMP Support Team by copying cmp-support-helper@google.com. With client approval, TrustArc can engage directly with Google for complex issues or certification blockers.

TrustArc offers the following response time commitments for all issues related to Google Consent Mode:

• Premium / Enterprise Clients – within 1 business day (24 hours)
• Standard Clients – within 2 business days (48 hours)

Creating a banner that meets Google’s banner requirements

TrustArc offers an out-of-the-box consent banner designed to comply with Google’s Consent Mode requirements. Implementing this banner correctly ensures that you meet Google’s policies for using their advertising and measurement products, such as Google Ads, Google Analytics, and Floodlight. This banner automatically includes a link to the Google Privacy Policy if you designate all Google Core Platform Services (CPSs) for data reception. If you intend to designate only a subset of Google CPSs, consult your Technical Account Manager to include a document link in your banner that discloses the specified Google CPSs.

NOTE: For specific customizations or to support advertisers designating all Google CPSs, collaborate with your Technical Account Manager or our support team to add this link to your Cookie Banner. If you intend to designate only a subset of Google CPSs, consult your Technical Account Manager to include a document link in your banner that discloses the specified Google CPSs.

Sample Banner with Google Privacy Policy link:

For more information, refer to our helpdesk information here.