Easing data protection rules will not boost AI development, study finds

A recent study conducted under the supervision of the Fraunhofer Institute for Systems and Innovation Research and the University of Kassel in Germany has found that relaxing user data protection rules will not necessarily contribute to the development of the artificial intelligence sector. The study emphasized that regulation has not been a primary cause of declining innovation.

The research suggested that Europe should strengthen its economic future by relying on technologies that respect privacy, digital sovereignty, and trusted innovation, rather than abolishing regulations governing user data use.

The study noted that startups and small and medium-sized enterprises face greater challenges than major digital companies when dealing with bureaucratic burdens and legal uncertainty.

In this context, the study called for targeted support for these types of companies and recommended linking regulatory obligations to the actual risk level of data processing, while also enhancing the responsibility of standard software developers.