The European Union (EU) has revamped several AI-related regulatory efforts to save businesses up to $5.8 billion in administrative costs by 2029.

The Digital Omnibus package streamlines rules on AI, cybersecurity, and data, backed by a data union strategy to unlock high-quality data for artificial intelligence.

For the AI Act, in particular, the commission plans amendments extending certain simplifications granted to small and medium-sized enterprises (SMEs); broadening of compliance measures so more innovators can use regulatory sandboxes; and reinforcing the AI Office's powers to centralize oversight of AI systems.

Companies in the EU now have until December 2027 to apply high-risk rules, in a change from the original August 2026 deadline.

The European Commission also clarified that enterprises may rely on "legitimate interests" to process personal data for AI-related purposes, subject to balancing current GDPR safeguards.

The GDPR and other directives have also been bundled into a "single-entry point" where European companies can meet all incident-reporting obligations.

This streamlining of data rules is a core concept of the new Data Union Strategy, which also promises to streamline data rules to scale up AI data access through "simpler and cheaper access to data sets and lower compliance costs" for businesses big and small. Researchers and innovators, meanwhile, are to benefit from high-quality data for AI training purposes.

Henna Virkkunen, Commission executive vice-president for tech sovereignty, security, and democracy, said: “Our companies, especially our start-ups and small businesses, are often held back by layers of rigid rules. By cutting red tape, simplifying EU laws [and] opening access to data, ... we are giving space for innovation to happen and to be marketed in Europe.”

The Strategy, which also aims to protect EU data sovereignty, came days after reports the European Commission was considering the weakening of its AI laws amid reported pressure from U.S. tech companies and the Trump administration, accusations which the body neither confirmed nor denied during a press briefing last week.

According to Politico, U.S. President Donald Trump may sign an executive order as soon as Friday to limit states’ ability to regulate AI. The order, made in response to the likes of California and Oregon legislating AI vendors to disclose risk mitigation plans and other safeguards, would direct the U.S. Attorney General to form an AI litigation task force within 30 days.

Telecoms press for EU framework reform to drive competition

This week also saw telecom leaders from Deutsche Telekom and Orange call on the EU to reform its digital framework to secure sovereignty while promoting global competitiveness.

Deutsche Telekom CEO Timotheus Höttges and Orange CEO Christel Heydemann issued a joint statement, urging the EU to reform its framework to “collectively protect the strategic European interests while remaining open to stay globally competitive and innovative.”

The duo called for a more investment-focused regulatory framework that European citizens, businesses, and administrations can greatly benefit from.

“We call for a fundamental overhaul of today's framework for telecoms. A bold Digital Networks Act should modernize, simplify, and better harmonize rules,” the CEOs urged.

For tangible progress and competitiveness to thrive, the execs outlined the need for “massive investments, bold political decisions, and active engagement of all stakeholders – public and private alike.”

When it comes to cloud, the leaders called for the EU to define common sovereignty criteria through legislation, together with a clear commitment to promote the use of European cloud services in public procurement. They believe this step will enable a more competitive and resilient European cloud ecosystem.

To support these goals, Deutsche Telekom and Orange have established a European Sovereign Tech Industry Alliance (ESTIA), along with ten other European companies from the telecoms and software sectors. The venture aims to promote EU digital sovereignty and advocate for a stronger focus on European digital solutions, particularly in the cloud sector.

The third focus point is geared towards the EU “becoming a true AI continent and not a mere consumer of AI tools developed outside its borders.”

As the two telecoms play a role in enabling access to AI tools for consumers, as well as tailor-made and specialized computing resources for the European industry, they urged the Union for extra support in this area for the creation of more efficient, smart, and agile networks and services.

This development follows earlier calls as companies, including BT, Deutsche Telekom, Ericsson, Liberty Global, Nokia, Orange, Vodafone, and telecom trade association GSMA, sent an open letter to the EU in October, accusing it of “slow and timid actions” when it came to EU industry competitiveness against the likes of the U.S. and China.