Excerpt from PYMNTS Article, Published on November 10, 2025
The European Commission is preparing to introduce a set of landmark revisions to the General Data Protection Regulation (GDPR) under its upcoming Digital Omnibus initiative. According to an internal draft, these proposals aim to narrow the definition of personal data and classify the processing of such information for artificial intelligence (AI) development as a “legitimate interest.”
If adopted, the changes could reshape how enterprises, governments, and tech companies manage personal data across the European Union. The draft suggests that not all information linked to an identifiable person would automatically qualify as personal data. Instead, only data that “directly reveals” sensitive traits — such as political views, health information, or sexual orientation — would retain enhanced protections.
Furthermore, the proposal excludes data derived through inference, comparison, or algorithmic analysis from heightened privacy safeguards. This could have major implications for analytics – driven industries, particularly those relying on user profiling, targeted advertising, and behavioral data.
The reforms also expand the use of personal data in AI model training. Under the proposed framework, processing personal data for AI development would be permitted when considered a legitimate business interest — unless outweighed by individuals’ fundamental rights. Critics argue this shift could undermine long – standing privacy protections that have positioned the European GDPR as the global gold standard for data protection.
Privacy groups such as noyb and the Irish Council for Civil Liberties warn that the amendments could favor large U.S. tech firms by relaxing enforcement around data used in AI systems. They caution that weakening GDPR could erode both digital rights and European competitiveness in emerging technologies.
The final draft of the Digital Omnibus is expected on November 19, 2025, pending approval by the European Parliament and Council.
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