Observed Signal · Sep 21, 2026 · Policy Update · Source: Trending Topics (DACH/CEE Innovation & Tech) · Impact: 4/5 · Sentiment: Negative
EU Council Debates Personal Data Use for AI Training
The EU Commission's 'Digital Omnibus' is in its decisive phase in the Council of the EU, with negotiations touching the GDPR core. The Austrian privacy organization noyb has published two confidential Council documents: the Irish Presidency's compromise text and German drafting suggestions. The new article 88b allows processing of personal data for AI training based on legitimate interest, with Germany proposing a legal presumption of legitimacy. Germany also proposes exemptions from key data subject rights (information, correction, deletion, restriction) under certain conditions. Critics warn of 'digital expropriation' of Europeans, while the Commission argues for simplification and competitiveness. The final adoption is expected no earlier than early 2027, and the European Court of Justice may ultimately decide on the issue.
This is a major policy update from the EU that could reshape the legal basis for using personal data in AI training, directly impacting AdTech and MarTech companies operating in Europe. The proposed changes to GDPR are highly relevant to the industry's data practices.
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Key Takeaways & Evidence Grounding
- The Irish Presidency compromise text (Council document 12535/26) introduces Article 88b allowing personal data processing for AI development/operation based on legitimate interest.
- Germany proposes a legal presumption that processing personal data for AI training is a legitimate interest, and that data collected for other purposes is compatible with the initial purposes.
- Germany suggests exemptions from GDPR Articles 14, 16, 17, and 18 (information, correction, deletion, restriction) if compliance is impossible or disproportionate.
- noyb founder Max Schrems criticizes the proposal as 'digital expropriation of Europeans', saying it prioritizes AI companies' interests over fundamental privacy rights.
- The European Data Protection Board and European Data Protection Supervisor have expressed concerns about the redefinition of personal data, fearing a drop in protection levels.
- The Digital Omnibus must be approved by the Council and EU Parliament, with a realistic conclusion expected no earlier than early 2027.
Connected Companies & Entities
“The German digital association Bitkom calls for targeted and proportionate adjustments.”
Ontology Mapping & Concepts
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EU Council Proposes GDPR Loosening for AI Training
The European Commission's Digital Omnibus proposal has entered a decisive phase in the Council of the EU, with leaked documents revealing proposals to legitimize the use of personal data for AI training. The Irish Presidency compromise text introduces Article 88 bis, allowing processing for 'legitimate interests' under GDPR, while German drafting suggestions go further, proposing a statutory presumption of legitimate interest for AI training, compatibility of data reuse, and exemptions from core data subject rights. Privacy organization noyb criticizes the proposals as a 'digital expropriation' of Europeans, while the Commission frames them as simplification. The Digital Omnibus must be adopted by both the Council and Parliament, with early 2027 seen as the earliest conclusion. The proposal faces potential judicial review by the CJEU.
EU begins enforcing AI Act, tightens transparency rules
The European Commission will begin enforcing the EU AI Act on 2 August 2026 and has introduced stricter transparency requirements for AI use. Users must be able to recognize interactions with AI and identify AI‑generated or altered content (including clearly labeled deepfakes). Providers of general-purpose and high-capability AI models face additional obligations: risk assessments, security measures, documentation of training data and model architectures, and publication of summaries and copyright policies. Certain manipulative or harmful AI uses will be banned. Enforcement will be coordinated by a newly created EU Office for Artificial Intelligence together with national authorities (e.g., Bundesnetzagentur) and the European Data Protection Supervisor, supported by a scientific expert group and new reporting mechanisms. The law will be rolled out further through 2028 with additional high-risk rules phased in.
Germans Demand Clearer AI Data Transparency
A Usercentrics study (fieldwork March 2026, run by Sapio Research) of 11,000 consumers across seven markets finds German consumers place above-average importance on data privacy and AI transparency, and that this concern is translating into real behavioural effects. In Germany 73% would pay a premium for brands that handle AI-related data transparently (average acceptable premium 9% vs global 7%), and 75% have already taken actions (cancelled, switched providers, or spent less) due to AI data concerns. Over half of Germans (53%) report not understanding how their data is collected and used. Consent friction is rising: 51% of Germans now click “accept all” less often. Globally, 71% find AI-driven personalization intrusive (66% in Germany). Usercentrics notes these trends can reduce the quantity and quality of signals available for targeting, measurement and campaign control; the report originates from a consent-management vendor, which may shape interpretation.
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