The European Commission’s “Digital Omnibus” is more than just a regulatory cleanup; it’s a strategic effort to unburden European businesses, promote innovation and save billions in compliance costs. While the goal is simplification, the impact on businesses – especially those in the data and AI space – is significant and multifaceted.
The Business Benefit: Reducing Friction and Cost
The primary aim of the Digital Omnibus is to make EU law more competitive and efficient, offering concrete advantages to companies:
| Area of Impact | Business Benefit | Estimated Savings |
| Simplified Reporting | A single portal for all data breach notifications (GDPR, NIS2, DORA) eliminates duplication and streamlines compliance processes across multiple laws. | Estimated €5 billion in one-off administrative savings by 2029. |
| AI Development | Explicit recognition of “legitimate interests” as a legal basis for processing data for AI training (with safeguards) provides legal clarity, reducing the need for cumbersome consent mechanisms in certain contexts. | Faster time-to-market and lower development costs for AI models. |
| User Experience (Cookies) | The one-click accept/reject rule for cookie banners, along with a “whitelist” of harmless, non-tracking purposes, reduces “cookie fatigue” and improves user retention on websites. | Improved conversion rates and reduced legal risk from non-compliant banners. |
| AI Act Timeline | Delaying high-risk AI compliance until standards are ready (deadline of Dec 2027) gives businesses a vital extension to prepare, test, and implement systems correctly. | Reduces the immediate financial and operational pressure of a looming compliance deadline. |
| SME Support | Lighter documentation and reporting requirements, plus dedicated regulatory sandboxes, make it easier for smaller companies to develop and test compliant AI systems. | Lower barrier to entry for Irish SMEs to innovate with AI. |
| Data Access | The consolidation of four data laws and new model contracts will make it easier and clearer for companies to access high-quality datasets to fuel AI and business intelligence. | Unlocks data potential for innovation and new service development. |
The Compliance Challenge: New Risks and Obligations
While the proposals bring relief, they also introduce new compliance points that businesses must address:
Cookie Enforcement: Bringing the cookie consent rules under the stronger GDPR framework (with potential fines up to 4% of global turnover) means non-compliance will be a much more serious issue. Businesses must immediately implement the one-click refusal mechanism.
Balancing Test for AI: Relying on “legitimate interests” for AI development is not a free pass. Companies must still conduct and meticulously document a Legitimate Interest Assessment (LIA), ensuring the processing does not override the rights of the data subject. This requires sophisticated governance.
Evolving Definitions: The proposals are expected to refine the definition of “personal data” and how “special categories” of data are treated, which will require companies to review and potentially recategorise the data they process.
Rights of Access: While the omnibus seeks to protect against “abusive” Data Subject Access Requests (DSARs), companies will need clear, legally sound policies to determine when a request can be reasonably refused or charged for.
“This move is a significant milestone for AI development in Ireland. By proactively setting up a robust governance framework, we’re ensuring that innovation thrives alongside the protection of individual rights.”
Mark Kelly, Founder of AI Ireland
The Digital Omnibus ultimately represents a significant step towards creating a single, more coherent and innovation-friendly digital market. Businesses should use this negotiation period to prepare their compliance and governance frameworks for the coming changes.
Call to Action
If you’d like to delve deeper into how these trends can reshape your organisation, we would be delighted to discuss them in more detail. Invite Mark Kelly, Founder of AI Ireland, to speak at your next team meeting, conference or strategy session. We can explore practical ways to harness AI responsibly, meet sustainability goals, and navigate the evolving consumer landscape. Let’s work together to ensure Ireland remains at the vanguard of innovation in 2025 – and beyond.
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