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European Commission Launches Consultation on Digital Omnibus as Debate Over GDPR Reform Intensifies

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The European Commission has opened a public consultation on the “Digital Omnibus,” a new initiative under its broader Digital Package on Simplification, aimed at reducing regulatory burdens for businesses while preserving the EU’s digital policy objectives.

The call for evidence, launched this week, will remain open until October 14, 2025, and invites citizens, companies, and organizations across Europe to share their views. It follows three earlier consultations — on the Data Union Strategy, the Cybersecurity Act review, and the Apply AI Strategy — which together generated more than 700 responses.

The Digital Omnibus will review a wide set of existing digital regulations, with a focus on streamlining rules in five key areas: the data acquis (including the Data Governance Act, Free Flow of Non-Personal Data Regulation, and Open Data Directive); cookie consent rules under the e-Privacy Directive; cybersecurity incident reporting obligations; the application of the AI Act; and elements of the European Digital Identity framework.

According to the Commission, the overall aim is to “reduce businesses’ administrative compliance costs without compromising the objectives of the underlying rules.” An accompanying document states that Brussels will also “explore the potential need for simplification measures in the realm of data regulation, to enhance data availability and sharing.”

The consultation comes as pressure builds for a wider overhaul of EU data law. Former European Central Bank president Mario Draghi last week publicly called for a comprehensive reform of the General Data Protection Regulation (GDPR), describing it as an obstacle to data-driven innovation. Critics argue that the GDPR’s expansive definition of personal data, combined with member states’ uneven implementation, has created unnecessary barriers for European startups and scaleups.

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Some governments have also been accused of “gold-plating” GDPR rules and resisting greater openness in data sharing, citing concerns about data transfers to non-EU countries, particularly the United States. Businesses say such restrictions limit Europe’s competitiveness in areas like artificial intelligence and digital services.

While the Commission’s Digital Omnibus consultation does not directly tackle GDPR reform, Draghi’s intervention has renewed calls for the EU to confront what many see as the “elephant in the room.” Analysts say that without addressing GDPR’s structural issues, the Omnibus exercise risks falling short of its ambition to meaningfully simplify Europe’s digital rulebook.

Defenders of the current framework argue that GDPR reform requires a separate legislative track and broader political consensus, pointing to ongoing interservice consultations and the Danish EU presidency’s current work on data governance.

Nevertheless, the Commission insists the Omnibus and the forthcoming “Digital Fitness Check” — a comprehensive review designed to stress-test the coherence of the EU’s digital acquis — reflect its commitment to simplification and better governance.

As Europe continues to navigate the balance between privacy, innovation, and competitiveness, the outcome of this consultation will be closely watched by businesses and policymakers alike.

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Study Finds AI Use May Weaken Basic Problem-Solving Skills

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Meta Launches Muse Spark, Its First Major AI Model in Nine Months

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Meta has unveiled its first major AI model in nine months, following a $14.3 billion (€12.24 billion) investment spree and executive hiring push to rival OpenAI and Google. The American tech company introduced the model, called Muse Spark, on Wednesday, claiming it is faster and smarter than its previous technologies.

The company, founded by Mark Zuckerberg, invested $14.3 billion in Scale AI in June 2025 and recruited its CEO and co-founder, Alexandr Wang, to oversee Meta Superintelligence Labs, which houses teams working on foundational AI models. Zuckerberg also embarked on a hiring campaign, bringing in executives from competitors including OpenAI, Anthropic, and Google.

In a blog post, Meta said, “Over the last nine months, Meta Superintelligence Labs rebuilt our AI stack from the ground up, moving faster than any development cycle we have run before. This initial model is small and fast by design, yet capable enough to reason through complex questions in science, math, and health. It is a powerful foundation, and the next generation is already in development.”

Muse Spark is positioned as a significant upgrade over Meta’s last major release, Llama 4, launched in April 2025. The company highlighted that the model excels in advanced reasoning, particularly in scientific, mathematical, and medical queries. To improve its health advice capabilities, Meta worked with over 1,000 physicians to curate training data, aiming for more accurate and comprehensive responses.

The AI model will power the company’s digital assistant in the Meta AI app and website, with planned integration across Facebook, Instagram, WhatsApp, Messenger, and the Ray-Ban Meta AI glasses. A “contemplating mode” will gradually roll out, allowing multiple AI agents to reason in parallel on complex tasks. Meta’s technical blog noted this feature is designed to compete with high-level reasoning in models such as Gemini Deep Think and GPT Pro.

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Zuckerberg emphasized on social media that Meta aims to build AI products that “don’t just answer your questions but act as agents that do things for you.” Unlike conventional chatbots, these AI agents operate autonomously, gathering information based on user preferences to assist without direct human commands.

One notable shift for Meta is the move away from open-source AI models. Unlike earlier releases, Muse Spark is not available for public download, meaning access to the technology is currently restricted. The company said the model is initially available only in the United States.

Muse Spark underscores Meta’s aggressive push into the competitive AI market, combining extensive investment, executive recruitment, and technical innovation to challenge the dominance of established players like OpenAI and Google.

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OpenAI Urges Governments to Rethink Economy as AI Growth Accelerates

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OpenAI has called on governments to rethink the foundations of the economy, warning that artificial intelligence (AI) could soon surpass human intelligence and drastically change how people work, live, and pay taxes. The company outlined its initial policy ideas on Monday, aimed at mitigating the economic disruption caused by rapid AI adoption in the United States and worldwide.

One key proposal is the creation of a public wealth fund that would give citizens a direct stake in AI-driven economic growth. According to the policy document, the fund could invest in diversified, long-term assets, including AI companies and broader firms adopting AI technologies, with returns distributed to all citizens.

The company also suggested that governments encourage businesses to launch four-day workweek pilot programs without any reduction in pay. This approach aims to balance the productivity gains provided by AI with the well-being of workers. Lawmakers are also urged to modernize tax systems by increasing taxation on corporate income and capital gains instead of labor income, which could be affected by AI-related job losses. The report proposes additional measures, such as taxing companies that replace human labor with automation.

OpenAI recommends that social benefits, including retirement pensions and healthcare, be provided through portable accounts that follow individuals across different jobs, industries, and entrepreneurial ventures. This model would help ensure continuity of support in a labor market increasingly influenced by AI.

These recommendations echo broader discussions among AI leaders about the future of work. OpenAI CEO Sam Altman and xAI’s Elon Musk have previously highlighted universal basic income as a potential necessity as traditional employment declines. Other tech leaders, including Nvidia’s Jensen Huang and Zoom’s Eric Yuan, have advocated shorter workweeks to distribute productivity gains from AI more evenly.

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Concerns about AI’s long-term impact extend beyond economics. In January, Anthropic CEO Dario Amodei warned that superintelligent AI, capable of outpacing human decision-making, poses “existential danger.” He suggested tighter controls on the export of key technologies, such as semiconductor chips used to train large language models, as one way to manage the risk. Amodei also called for transparency laws requiring AI companies to disclose how they guide their models’ behavior.

OpenAI’s policy document represents an early step in urging governments to address the structural changes AI may bring. The proposals highlight the need to rethink traditional concepts of work, taxation, and social support as the technology continues to advance rapidly.

As AI continues to reshape global economies, policymakers and industry leaders face increasing pressure to develop strategies that protect citizens while fostering innovation and sustainable growth.

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