Is the ethical leadership of the GDPR worth the economic costs?

In an op-ed for Euractiv, Ben Schilz, an entrepreneur and data protection expert, discusses how the EU General Data Protection Regulation (GDPR), once hailed globally as a landmark privacy law in 2018, now poses a challenge to Europe's economic prosperity. The GDPR successfully established privacy as a fundamental right, prompting a global reevaluation of data practices. However, its framework was not designed to address the complexities associated with artificial intelligence (AI). Schilz highlights that the driving force of today's economy is real-time data, and the GDPR's vague definitions of "personal data" and "consent" create significant ambiguity for rapidly evolving sectors.

The article highlights geopolitical tensions, positioning Europe between the fragmented regulation of the US, which favours rapid experimentation, and China's state-coordinated approach. While Europe excels in rights and regulation, it lags in platform creation and AI deployment. Schilz argues that for Europe to remain competitive, it must address the growing "GDPR chill," where ambiguity pushes innovation elsewhere. He suggests a middle path, advocating not for abandoning the GDPR, but for modernising it. This includes clearer GDPR guidance on data use for AI training, proposals for differentiated rules for pseudonymised data, regulatory sandboxes and context-based consent models. The goal is to ensure that the GDPR, which was built to protect citizens, also promotes ethical innovation and economic growth.

Training Announcement: Freevacy offers a range of independent data protection qualifications from IAPP and BCS. Our certified courses are available at foundation and practitioner levels and cover multiple legal jurisdictions, data protection operations management, and the implementation of complex privacy solutions in technical environments. Find out more.