Italy's privacy watchdog fines OpenAI for ChatGPT's violations in ...
Italy’s data protection watchdog announced on Friday that it has imposed a fine of 15 million euros ($15.6 million) on OpenAI following an investigation into the handling of personal data by the company's popular chatbot, ChatGPT.
The investigation conducted by Italy's privacy watchdog, known as Garante, revealed that OpenAI processed users' personal data for the training of ChatGPT without a sufficient legal basis. This action was deemed to be a violation of transparency principles and the information obligations towards users.
OpenAI's Response
OpenAI has contested the decision, labeling it as "disproportionate" and has stated that they will be appealing the fine. Despite the disagreement, OpenAI reaffirmed its commitment to collaborating with privacy authorities globally to deliver AI solutions that uphold privacy rights.
An OpenAI spokesperson mentioned that when instructed by Garante to cease offering ChatGPT in Italy in 2023, the company cooperated to reinstate the service shortly after. Despite the recognition of OpenAI's privacy protection measures, the fine imposed is significantly higher than the revenue generated in Italy during the relevant timeframe.
Findings of the Investigation
The probe also uncovered that OpenAI lacked an adequate age verification system to prevent users under the age of 13 from accessing inappropriate AI-generated content. As a result, the Italian authority has directed OpenAI to conduct a six-month awareness campaign through various Italian media channels to educate the public about ChatGPT and its data collection practices.
Regulatory Scrutiny
The surge in the popularity of generative artificial intelligence systems, such as ChatGPT, has attracted regulatory attention on both sides of the Atlantic. Regulatory bodies in the US and Europe have been scrutinizing OpenAI and other companies involved in the AI industry. Governments worldwide are also developing regulations to mitigate the risks associated with AI technologies, with the European Union's AI Act serving as a notable example.
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