EU digital package promises 155B in savings with streamlined AI and data rules

The European Commission has introduced a comprehensive EU digital package with the goal of reducing bureaucracy, fostering AI innovation, and facilitating cross-border business operations by implementing unified digital identities. This initiative includes new measures for data governance, cybersecurity streamlining, and the introduction of European Business Wallets, all aimed at eliminating redundancies and simplifying compliance processes for businesses of all sizes.

For readers of eeNews Europe, this development is poised to revolutionize how European tech companies create, implement, and expand AI and digital services. The package prioritizes standards and tools, providing semiconductor, embedded, and cloud vendors with a more defined regulatory framework while significantly decreasing compliance burdens.

This digital package is significant as it directly impacts the certification timelines of products, research and development expenditures, and the speed at which AI-enabled systems and connected products can enter the market.

Digital Omnibus: harmonizing AI, data, and cybersecurity regulations

At the core of this initiative is the "digital omnibus," which encompasses reforms across AI, cybersecurity reporting, and data accessibility. Regulations for high-risk AI will only be enforced once necessary support tools and standards are in place, with implementation deadlines limited to 16 months. Small and medium-sized enterprises (SMEs) are expected to benefit the most, with simplified documentation projected to save €225 million annually.

The proposal also expands regulatory sandboxes, with plans for an EU-wide sandbox by 2028, providing more opportunities for real-world testing in sectors like automotive and industrial automation. Additionally, the AI Office will have enhanced oversight powers, particularly concerning general-purpose AI models, in an effort to reduce regulatory fragmentation.

Cybersecurity incident reporting, currently governed by various regulations such as NIS2, GDPR, DORA, and sector-specific rules, will transition to a unified reporting interface. GDPR will undergo targeted clarifications to streamline compliance without compromising privacy protections. The Commission also aims to modernize cookie consent mechanisms to reduce banner fatigue and enable simplified preference management.

Another key focus is on enhancing access to high-quality datasets. The Commission plans to consolidate the Data Act into a single framework that merges four data regulations into one, incorporating model contractual terms and cloud contract clauses. Exemptions related to cloud switching for SMEs and mid-cap companies could result in savings of €1.5 billion in one-time costs.

Data Union Strategy and European Business Wallets: expanding operations across 27 member states

To drive AI advancement, the new Data Union Strategy proposes increased data access through labs and a legal support system for navigating the Data Act. Additional safeguards aim to prevent the leakage of sensitive European data and ensure equitable treatment on the international stage.

One of the most transformative elements is the European Business Wallet, offering a secure digital identity for companies operating in any EU member state. This platform will enable firms to digitally sign, store, and exchange verified documents, potentially unlocking up to €150 billion annually in reduced administrative costs and processes.

Commission executives have positioned this initiative as a push for competitiveness. Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security, and Democracy, emphasized the importance of cutting red tape, simplifying EU laws, and enhancing data access to foster innovation while safeguarding user rights. The legislative process now moves to Parliament and Council review, with a Digital Fitness Check scheduled through March 2026 to assess future simplification efforts.