The European Union (EU) leads in the regulation of advanced technologies, with high penalties for non-compliance necessitating particular caution by business entities using enterprise software, whether it be SAP, Oracle, or Odoo. The increasing reliance on centralized databases and artificial intelligence (AI) raises new questions about data protection, system security, and ethical implications, increasing the risk of privacy breaches, data leaks, and insufficient oversight. 
The regional legislative landscape is also becoming more complex. Serbia adopted its Data Protection Law several years ago, while Bosnia and Herzegovina (BiH) followed in February of this year when its new Data Protection Law came into force. Although there is clear alignment with the General Data Protection Regulation (GDPR), practice shows that the application of the GDPR gives rise to numerous legal disputes and additional interpretations. 
This highlights the need for more precise guidance, which regional legislation still does not fully provide. On the other hand, for business entities from the EU, the gradual harmonization of legal regulations in BiH and Serbia with European standards represents an important signal of legal predictability and reliability. Such a framework contributes to the building of trust and facilitates cooperation with partners from the Balkans, particularly in the context of data processing, provision of digital services, and joint participation in the EU's single digital market. 

The use of software solutions such as Odoo All-in-One can significantly assist in meeting regulatory requirements. Odoo SA, as a business entity providing cloud hosting services, continuously develops its systems and tools to maintain a secure platform and apply best practices in the field of privacy and security. 
It is important to note that even when business software supports numerous regulatory requirements, the responsibility for full compliance always lies with the end user—the business entity using the software. Therefore, the implementation of any advanced technological solution entails compliance requirements, defined internal procedures, properly formulated business and privacy policies, as well as staff training. 
Odoo, as business software, is one example of enterprise solutions on the market where law and ethics must accompany technology. To ensure that business operations are genuinely compliant with legal frameworks, every implementation of business software must be accompanied by precise legal analysis and technical localization. 

Key EU Regulations for Business Software, Including Odoo 

Given that software solutions alone are often insufficient, true compliance in the process of digitalizing and optimizing business operations through the implementation of advanced technological solutions also entails the adoption of internal policies, regular staff training, and clear protocols for managing personal data and exercising user rights. This implies that transparency is key in business processes that involve the use of personal data or AI-based tools. 

The GDPR is the EU's fundamental regulation that protects the personal data of EU citizens. Its set of rules dictates how the personal data of EU citizens may be processed by business entities operating in the EU market or using such data as part of their operations outside the EU. Odoo, as all-in-one business software, offers a range of functionalities in this regard. However, even with the implementation of such a software solution, it is necessary to conduct a review and ensure that the system is implemented in a manner that complies with the legal standards set out in the GDPR. 

The EU AI Act, as a new regulatory framework for artificial intelligence, introduces additional obligations for business entities operating in the EU. For example, Odoo uses AI for process automation and personalization (e.g., sales forecasting, CRM segmentation), which requires risk classification and possible additional measures in accordance with the AI Act. The AI Act mandates transparency, human oversight, and explainability of decisions—especially for high-risk systems, which must be ensured by the software user in accordance with the law. Accordingly, the implementation of business software must consider the requirements laid out in the AI Act. 

Broader Regulatory Framework: Related EU Legislation Relevant to Business Software Including Odoo 

In addition to the GDPR and AI Act, the EU has a set of legal frameworks relevant to the development and implementation of business software that must be respected if a business entity operates in the EU or processes the data of EU citizens. 

When it comes to cookies and electronic communication, this triggers the application of the ePrivacy Direktive, which regulates this area. Specifically, in the context of Odoo, this Directive is relevant for web modules and CRM. 

The EU Digital Services Act (DSA) introduced obligations for platforms providing services to end users. In the specific case of Odoo, the DSA is relevant for modules such as eCommerce, forums, or customer portals. 

Security requirements for software systems in healthcare, education, and finance fall under the NIS2 Direktive. 

Additional protection for Odoo's end users is governed by the Consumer Rights Package (CRD, Omnibus). These legal frameworks regulate pricing, offer personalization, and review transparency, all of which are critical for the Odoo Sales module. 

In the context of business software, including Odoo, the European Accessibility Act is also relevant. This legislative framework obligates business entities to make software and web content accessible to persons with disabilities.

Ultimately, the scope of EU legal regulation depends on the sector of application — the more regulated the sector, the more complex the legal framework for software development. 

What Do EU Regulations Mean for Business Entities from BiH or Serbia That Are Digitalizing Their Operations and Operating in the EU?  

For business entities from BiH or Serbia that provide goods or services within the EU, aligning operations with EU regulations is not option but a legal obligation. For instance, according to the GDPR, the rules apply not only to business entities registered in the EU but also to all entities outside the EU that process data of EU citizens or offer goods and services in that market. Non-compliance with European standards can lead to serious consequences—from high fines and business restrictions to loss of trust from clients and business partners. Compliance with regulations such as the GDPR, AI Act, and other EU legal frameworks enables business entities from BiH or Serbia to operate legally, transparently, and equally participate in the EU single digital market. 

Why Is It Important to Consult Legal and Technical Experts When Digitalizing Business Operations?

Digitalization with advanced tools like Odoo requires timely involvement of legal and technical experts; otherwise, gaps may arise between the software's functionalities and the actual legal obligations that the user must fulfill. Below are two examples that directly illustrate the importance of collaboration between legal and technical experts in the development and implementation of software solutions. 

1. Automated Decision-Making and Consumer Profiling 

For example, if business software includes algorithms for customer profiling or automated decision-making (e.g., offering a specific product), it is essential to consider the legal obligations for such practices. 
For example, Article 22 of the GDPR states that individuals have the right not to be subject to solely automated decision-making, including profiling, that produces legal effects or significantly affects them in a similar way. 
This article also provides exceptions. Automated decision-making or profiling is permitted if personal data are obtained with explicit consent or as part of a contractual relationship. 
The article also requires additional safeguards, such as meaningful human intervention related to the automated decision or profiling. More concretely, imagine a business that collects, processes, and uses personal data for personalized advertising, assuming that this particular service or product could be the subject of a business relationship with the data subject. 
Technically, business software, including Odoo, can provide functionality to collect data and initiate such processes. However, no software can independently secure the user's explicit consent for such processing or guarantee meaningful human intervention, which are both essential to avoid violating Article 22 of the GDPR. For example, a system can automatically segment customers based on their purchases and automatically send personalized offers. If such profiling or an automated decision significantly affects the user (e.g., denying access to a service or classifying the user as high-risk without human review), the business using such solutions must ensure a legal basis (such as explicit consent), offer a mechanism for meaningful human intervention, provide an explanation of the decision logic, and allow users to contest the decision. Therefore, although business software may technically perform automated decisions or profiling, it does not in itself provide all the procedural and ethical safeguards required for compliance with Article 22 of the GDPR. Consequently, the business entity must define internal processes, privacy and data protection policies, grievance mechanisms, and staff training to close this "compliance gap." 

2. Compliance of Business Websites in the BiH Context  

We analyzed a significant number of business entities in BiH and their e-commerce websites. Given that the new Data Protection Law in BiH has entered into force and closely follows GDPR principles, this analysis was key to assessing market readiness. Detailed analysis revealed that many available websites of business entities registered in BiH are not aligned with applicable BiH legislation. 
Furthermore, most are not aligned with EU standards, despite offering goods and services online to the EU market. 
Examples of key deficiencies observed include a lack of transparency in privacy and data protection policies. 
Visits to business websites revealed: 
No clear designation of the data controller and processor, 
No description of the purpose and legal basis for data processing, 
User rights are not clearly defined, nor are mechanisms for exercising them explained Missing information on third parties with whom data are shared or on international data transfers, 
No defined data retention periods or adequate protection measures, 
No cookie banners or mechanisms for obtaining user consent. 
This clearly indicates an urgent need for a detailed and properly implemented Privacy and Data Protection Policy, incorporating all legally required elements tailored to the specifics of the new BiH law, as well as internal business policies in line with other applicable BiH regulations. 
If a business entity operates in the EU, these policies and documents must also be harmonized with EU standards and made transparent on the business website. Compliance with EU regulations is essential not only to avoid high fines but also to enhance business reputation and build trust with partners and clients in the EU market—which is especially important for businesses operating outside BiH.

Conclusion

Digitalization of business operations without appropriate legal and technical support represents a serious risk for entities operating in the EU, BiH, or Serbia. While business software like Odoo can offer powerful functionalities, true compliance only begins where technology is aligned with law, ethics, and transparency. Therefore, in the process of developing, implementing, or upgrading software, interdisciplinary cooperation between technical and legal-ethical teams is essential. 
Ultimately, the scope of EU legal regulation depends on the sector of application—the more regulated the sector, the more complex the legal framework for developing software solutions. 

Wolfinne.com is available to provide comprehensive support in the process of legal-ethical assessment and compliance review, ensuring that your digital transformation is fully aligned with all relevant regulations and best practices.