EU loosens rules on AI training data: GDPR may allow models to be trained directly on the basis of โlegitimate interestโ
๐ฐ On 10/21, the Council of the EU agreed on its position on the Digital Omnibus: a new Article 88bis of the GDPR would allow personal data to be processed for the development and operation of AI systems/models on the basis of โlegitimate interest,โ without obtaining consent from each individual (Council of the EU website)
๐ฐ Conditions apply: organizations must pass a balancing test and implement technical safeguards. Users retain an unconditional right to object (opt out); negotiations with the European Parliament are still needed before the rules can take effect (IAPP/EUTechReg)
๐ฐ Privacy group noyb criticized the proposal as a โdigital levyโ on Europeans, covering data scraped from the internet as well as old records from years ago
[Viewpoint]
This signals that Europe is easing up on AI. The GDPR has been one of the main constraints holding back European AI; loosening the rules would most benefit big tech companies sitting on vast amounts of user data, further strengthening their data moats. But opting out would be nearly impossible for data subjects who have never directly interacted with the companies involved. More lawsuits and parliamentary wrangling are likely.
[Opportunities/Risks]
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Positive: AI adoption in Europe could accelerate, and the narrative around AI computing power and data infrastructure remains intact. AI-related concepts such as
$FET may receive a sentiment boost.
โ ๏ธ Risk: Parliament may make substantial changes. The AI sector has just faced a sell-off this week amid concerns over capital expenditure; next weekโs earnings from Microsoft/Google/Amazon and the FOMC will be the real drivers.
๐ Watch: The European Parliamentโs position, the timeline for trilogue negotiations, and whether noyb files a lawsuit.
Do you think data rules based on โavailable by default, opt out if you wantโ will help European AI catch up with the US and China?
#AI #ๆฌง็ #GDPR #ๆฐๆฎ้็ง #Crypto Market
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