A previous president of the European Central Bank advocates for reductions in GDPR and puts a halt to the AI Act at a Brussels conference.
In the rapidly evolving world of artificial intelligence (AI), Europe is making significant strides in establishing a clear and comprehensive legal framework.
Last year, in May 2024, the AI Act entered into force across the European Union, marking a turning point in the regulation of AI systems. The European Commission, under pressure to demonstrate support for technological advancement, has been actively working towards creating a regulatory environment that fosters innovation while ensuring privacy protection.
One of the key players in this endeavour is Mario Draghi, the former European Central Bank president and Italian prime minister. In a call made during a Brussels conference hosted by Commission President Ursula von der Leyen, Draghi emphasized the need for "radical simplification" of General Data Protection Regulation (GDPR) regulations to accelerate AI development in Europe.
The need for speed and intensity in AI development was further highlighted as Europe seeks to compete with global AI powerhouses like China and the United States. However, this push for progress must be balanced with privacy concerns, as demonstrated by South Korea's AI privacy framework, unveiled in August 2025. This framework aims to strike a balance between innovation and privacy protection.
In line with this, the EU AI Act is entering new phases. As of September 2025, specific rules for general-purpose AI models are effective, with full enforcement for high-risk AI systems set for August 2026. EU member states, including Germany, have faced delays in national implementation but are now catching up. Germany's Conference of Data Protection Supervisors published first AI privacy guidelines in May 2024, and the French CNIL published comprehensive AI development guidelines in July 2025.
However, these regulatory developments could slow some AI deployments due to compliance burdens. Yet, they also provide clearer legal frameworks, potentially fostering safer, more trustworthy AI innovation in Europe. For instance, the EU Data Act, effective September 12, 2025, reflects evolving data-sharing regulations which may influence AI data governance and compliance.
The European Data Protection Board initiated cooperation with the EU AI Office in November 2024, further strengthening the regulatory landscape. In September 2025, the European Commission opened an AI transparency consultation, inviting stakeholders to contribute to the ongoing dialogue on AI regulation.
Despite these advancements, challenges persist. In April 2025, privacy organization noyb warned of potential problems with the GDPR procedural regulation, highlighting the ongoing need for adaptations to ensure the smooth implementation of AI regulations.
University research established that large language models qualify as personal data in June 2025, adding another layer of complexity to the regulatory landscape. As Europe navigates these complexities, it remains committed to fostering a competitive and responsible AI ecosystem.
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