There’s no doubt that in 2026, the data protection landscape will continue to evolve rapidly. Regulators will continue to adapt to new technologies such as AI, cross-border services and advanced analytics. There will continue to be geopolitical shifts. In Europe and the UK, businesses will face changes in enforcement practices, new domestic legislation, emerging standards on consent and automated decision-making and continued scrutiny of data transfers. 

 

Managing risk and maintaining competitiveness will involve strategic alignment between compliance, technology and business functions. Are you ready?

 

Key developments to watch in 2026

 

EU GDPR: The Digital Omnibus, cross-border enforcement and regulatory reform

 

The Digital Omnibus: Will it simplify EU digital regulation?

A central development shaping EU data protection in 2026 is the EU’s “Digital Omnibus” initiative. Rather than introducing a new standalone regime, the Digital Omnibus is a legislative simplification and alignment exercise, intended to reduce fragmentation, overlaps and administrative burden across existing EU digital laws including GDPR, the Digital Services Act (DSA), the Digital Markets Act (DMA) and related consumer protection rules.

 

As of late 2025, the Digital Omnibus is still in development, with policy direction set by the European Commission and detailed proposals expected to move through the EU legislative process into 2026. The Omnibus does not replace GDPR. Instead, it seeks to:

• Improve consistency of enforcement across digital legislation 
• Clarify overlapping obligations such as transparency, risk management and governance duties 
• Streamline supervisory cooperation where multiple regulators oversee the same organisation or service 

Legal commentators have stressed that the goal is regulatory coherence, not deregulation especially for large digital, AI-driven and cross-border service providers.

 

GDPR cross-border enforcement reform: A parallel but reinforcing track

Running alongside the Digital Omnibus, in June 2025 the Council of the EU and the European Parliament reached agreement on reforms to GDPR cross-border enforcement procedures. These reforms focus specifically on fixing weaknesses in the GDPR’s cooperation and consistency mechanisms, which have historically led to slow investigations and inconsistent outcomes in cross-border cases.

 

The reforms aim to:

• Speed up the handling of cross-border complaints 
• Improve cooperation and information-sharing between national data protection authorities 
• Reduce procedural bottlenecks where multiple regulators are involved 

 

Although these changes sit within GDPR rather than the Digital Omnibus itself, the policy direction is aligned: faster, more coordinated, and more predictable enforcement across the EU.

 

Implications for 2026

 

Together, the Digital Omnibus initiative and GDPR enforcement reforms point to a clear shift in the EU’s approach:

• Stronger coordination across the EU
  Organisations operating across multiple EU member states should expect less tolerance for fragmented compliance approaches and greater alignment between regulators. 
• Faster and more decisive enforcement
  Long-running cross-border GDPR cases are likely to move more quickly, increasing regulatory certainty but also shortening response times for organisations. 
• Greater scrutiny of complex digital ecosystems
  Businesses offering AI-driven services, platforms, adtech, cloud or data-intensive products may face joined-up oversight, where GDPR issues intersect with wider digital regulation. 
• Reduced reliance on “forum shopping”
  Procedural reforms and supervisory coordination reduce the ability for organisations to benefit from regulatory delays tied to specific jurisdictions. 

 

Why UK organisations should care

 

For UK organisations that offer services to EU users, process EU personal data or rely on EU-UK data flows, these developments mean that GDPR enforcement will likely become more predictable but also more assertive in 2026. Even where UK law diverges under the Data (Use and Access) Act (DUAA), EU-facing operations will still need to meet fully aligned GDPR standards, enforced in a more coordinated EU regulatory environment.

The interaction between the Digital Omnibus and GDPR is a key issue to watch for in 2026, particularly for organisations operating across multiple regulatory regimes.

 

UK’s Data (Use and Access) Act 2025: Phased implementation

 

DUAA received Royal Assent in June 2025. It represents a major reform of UK data protection and access law and the key provisions began to take effect from August 2025. It is expected to be phased in throughout 2026. 

 

What is changing?

• The Act will amend the UK GDPR and the Data Protection Act 2018, introducing changes in areas such as automated decision-making, subject access requests, lawful bases and complaint handling. 
• Automated decision-making reforms provide more flexibility for organisations in using automation, subject to safeguards including transparency and human intervention requirements. 
• New lawful bases such as “recognised legitimate interest” are being introduced to give organisations clearer grounds for processing in certain scenarios, and formal data protection complaints processes must be established in many cases. 

 

DUAA in 2026: What to expect

• A staged implementation with many reforms especially in data transfer rules, complaint handling requirements and ADM, will come into force during the year, with guidance and consultations being released by the ICO. 
• The ICO is actively consulting on guidance to help organisations understand and comply with new requirements. 
• The EU-UK adequacy decision, which allows personal data to flow freely from the EU to the UK without additional safeguards, is scheduled for review in early 2026. During this review, the EU will assess whether UK data protection law continues to offer protection that is essentially equivalent to the GDPR. Because DUAA introduces changes to the UK’s data protection framework, how those changes are implemented in practice will be closely scrutinised. Any perception that UK protections have been materially weakened could put adequacy at risk, with significant implications for organisations that rely on EU-UK data transfers.. 

Regulatory convergence and higher stakes means more enforcement 

 

Data protection enforcement is becoming sharper across jurisdictions. 

• Regulators are working with other supervisory authorities to coordinate action where digital risks overlap. This is a trend that is likely to accelerate into 2026. 
• The ICO continues to strengthen enforcement powers, including higher fines under PECR now aligned with GDPR limits and broader compliance expectations.

 

This means organisations should be ready for quicker investigations, cross-border complaints and stricter compliance evaluation.

 

Automated decision-making and AI governance

 

Automated decision-making (ADM) and AI governance will be one of the most closely scrutinised areas of data protection in 2026, particularly as organisations deploy AI systems at scale across recruitment, credit scoring, fraud detection, health, education and customer services.

 

A reworked ADM Regime under the DUAA

 

Under DUAA, the UK is restructuring its ADM framework to allow more flexibility in the use of automated systems, including some AI-driven decision-making, while retaining core safeguards for individuals. In practice, this means that organisations may rely more readily on automated processing but only where specific protections are in place.

 

Key safeguards include:

• Transparency about when and how ADM is used 
• Meaningful human intervention, including the ability for a decision to be reviewed by a human 
• Contestability, giving individuals the right to challenge outcomes 
• Governance and documentation demonstrating oversight and accountability 

For decisions involving special category data such as health, biometric or ethnicity data, the rules remain more restrictive, reflecting the higher risk of harm. In these cases, automated decisions will generally require stronger legal justification, tighter controls and enhanced safeguards.

 

The wider AI governance context

 

Automated decision-making under data protection law does not operate in isolation. By 2026, organisations will need to manage overlapping obligations arising from:

• UK GDPR, as amended by DUAA 
• The Data Protection Act 2018, which supplements UK GDPR, including rules on special category and criminal offence data, safeguards, exemptions and enforcement 
• EU GDPR, where organisations offer goods or services to individuals in the EU or monitor their behaviour 
• Emerging AI governance frameworks, including the EU AI Act for EU-facing or EU-used AI systems 
• Sector-specific regulation and ethical expectations, particularly in regulated sectors such as financial services, health, education and employment

 

Even where the UK takes a more flexible approach than the EU, EU-facing AI systems will still need to meet GDPR and AI Act standards, including risk assessments, transparency and human oversight. This creates a dual-compliance challenge for UK organisations operating across borders.

 

What regulators will expect 

 

As AI use becomes routine, regulators are likely to focus less on whether AI is used at all, and more on how it is governed. Organisations will increasingly be expected to demonstrate:

• Clear internal accountability for AI systems 
• Documented decision-making logic and risk assessments 
• Evidence that human oversight is real and effective, not merely theoretical 
• Ongoing monitoring for bias, errors and unintended impacts 

Why this will matter in 2026

 

By 2026, ADM and AI governance will be a basic compliance issue, not a niche technical concern. Organisations that cannot explain, justify or control their AI-driven decisions will face increased regulatory risk, particularly where decisions affect individuals’ rights, access to services or economic opportunities.

 

Increased flexibility under DUAA does not mean lower expectations. Instead, it raises the bar for governance, documentation and transparency, making effective AI oversight a critical component of data protection compliance.

 

Consent, transparency and dark patterns

 

Regulators globally are paying increased attention to how organisations collect consent and structure user interfaces:

• There is rising scrutiny on practices that undermine genuine user choice, commonly called “dark patterns.” 
• While specific 2026 legislation targeting UI design is not yet finalised, this remains an enforcement priority in both the EU and UK. 

Clear data practices, simplified consent experiences and transparent communication with users are going to be a priority in 2026.

 

What does this all mean for UK organisations?

1. There is a renewed urgency for data governance 
   • Review internal policies, DSAR workflows, ADM controls and cross-border data transfer arrangements in light of DUAA and evolving GDPR enforcement. 
2. Regulatory risk is increasing 
   • Get ready for closer scrutiny and faster regulatory timelines. Documentation and audit trails will be essential to demonstrate compliance. 
3. There will be competitive advantage in privacy 
   • Organisations that adopt robust privacy frameworks with clear consent mechanisms and transparency practices, may gain trust with partners and customers, particularly in highly regulated sectors like fintech, healthtech and cloud services. 
4. Cross functional strategy will be more important
   • Data protection now sits at the intersection of legal, technical and commercial domains. Compliance is becoming a shared organisational priority. 

Be prepared: The 2026 data protection checklist

• Map your data flows, including cross-border transfers and AI/automation touchpoints.
• Update privacy policies and consent mechanisms to reflect DUAA changes.
• Establish formal complaint handling processes and governance for ADM.
• Monitor ICO guidance and consultations, especially on recognised lawful bases and complaint requirements.
• Align legal, tech and business teams around evolving obligations.

 

It appears that 2026 will be a transition to a more dynamic, interconnected data-protection environment where enforcement, technology and innovation intersect. Companies that proactively strengthen their data governance and compliance processes now, will likely reduce their risk of non-compliance and also garner trust and even competitive advantages.

 

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