The Italian Data Protection Authority has informed OpenAI that the smart chatbot ChatGPT is infringing European data protection laws. An investigation was conducted by the authority, which took several months into the AI-powered chatbot.
In a new statement, the Italian Data Protection Authority mentioned initial recommendations regarding the breach of European law. These recommendations come as the authority continues its progress in the investigation initiated last year.
The authority known as “Garante” is one of the supervisory authorities in the European Union, responsible for assessing compliance of the artificial intelligence platform with the data privacy framework.
Last year, ChatGPT was banned by the authority due to allegations of privacy rules violations in the European Union.
The authority allowed the chatbot to resume operations after OpenAI resolved issues related to customers’ right to refuse the company’s use of personal information for training its algorithms.
At that time, the regulatory authority indicated continued scrutiny and announced in a new statement that it had reached conclusions showing potential violations of data privacy, without providing further details.
The responsible entity Garante stated that OpenAI, a company backed by Microsoft, has a 30-day opportunity to present defense arguments. It added that its investigations take into account efforts made by the European task force formed by national privacy watchdogs.
Italy was the first country in Western Europe to restrict ChatGPT after catching the attention of legislators and regulators with its rapid development.
Any company that violates the rules can face fines of up to €20 million or 4% of its global turnover under the general data protection laws in the European Union.
Data protection authorities can issue orders requiring changes in data processing methods to prevent confirmed breaches.
As a result, OpenAI may need to alter its business approach or withdraw its services from EU member states due to authorities’ desire to enforce changes that may not align with the company’s preferences.
In December, legislators and governments in the European Union agreed on temporary terms to regulate artificial intelligence systems, such as ChatGPT, indicating progress towards establishing rules governing this technology.
