Italy's privacy watchdog fines OpenAI for ChatGPT's violations in ...
Italy’s data protection watchdog has imposed a fine of 15 million euros on OpenAI for violations related to its chatbot ChatGPT. The investigation conducted by the country’s privacy watchdog, known as Garante, revealed that OpenAI processed users’ personal data for training ChatGPT without a proper legal basis. This action was deemed to have contravened the principle of transparency and the obligation to provide users with relevant information.
OpenAI has expressed its disagreement with the decision, labeling it as "disproportionate" and has stated intentions to appeal the ruling. The company highlighted its efforts to collaborate with the authorities, including reinstating ChatGPT in Italy following an initial order to cease its operations in the country in 2023. Despite Garante acknowledging OpenAI's industry-leading privacy protection practices, the imposed fine significantly exceeds the revenue generated by the company in Italy during the period under scrutiny.
Insufficient Age Verification System
The investigation also identified a lack of an adequate age verification system by OpenAI, leading to exposure of users under 13 years of age to potentially inappropriate AI-generated content. As part of the penalty, the Italian authority directed OpenAI to conduct a six-month awareness campaign via various Italian media outlets to inform the public about ChatGPT, particularly focusing on data collection practices.
Regulatory Scrutiny on AI Systems
The increasing popularity of generative artificial intelligence systems such as ChatGPT has prompted regulatory scrutiny in various regions. Authorities in the U.S. and Europe have initiated investigations into companies like OpenAI that have played pivotal roles in the AI landscape. Governments globally are also developing regulations to mitigate the risks associated with AI technologies, with the European Union's AI Act serving as a comprehensive framework for governing artificial intelligence.
For more insights on this topic, you can refer to the following articles: Regulators in the U.S. and Europe. Additionally, you can learn more about the European Union's approach to artificial intelligence here.
