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Home»News
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rewrite this title OpenAI Fined by Italian Privacy Watchdog for ChatGPT Violations

12 months agoNo Comments3 Mins Read
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Summarize this content to 2000 words in 6 paragraphs What’s NewOpenAI was sued this week by an Italian privacy watchdog for over $15 million following an investigation into the collection of personal data by ChatGPT, the U.S. artificial intelligence company’s widely used chatbot.Why It MattersItaly’s privacy watchdog, Garante, said its investigation revealed that OpenAI processed users’ personal data to train ChatGPT “without an adequate legal basis” and failed to meet transparency requirements or properly inform users, violating privacy regulations.What To KnowThe watchdog stated that its investigation, launched last year, also determined OpenAI lacked an “adequate age verification system” to prevent users under 13 from accessing potentially inappropriate AI-generated content.The Italian regulator has also mandated OpenAI to conduct a six-month media campaign across various Italian outlets to inform the public about ChatGPT’s data collection practices.

The OpenAI logo generated by ChatGPT’s Dall-E text-to-image is seen in Boston on December 8, 2023. On December 20, 2024, OpenAI was sued by an Italian privacy watchdog over ChatGPT violations.
The OpenAI logo generated by ChatGPT’s Dall-E text-to-image is seen in Boston on December 8, 2023. On December 20, 2024, OpenAI was sued by an Italian privacy watchdog over ChatGPT violations.
AP Photo/Michael Dwyer/AP Photo/Michael Dwyer
The rapid rise of generative artificial intelligence systems like ChatGPT has come under increasing scrutiny from regulators on both sides of the Atlantic.Regulators in the U.S. and Europe are closely examining OpenAI and other key players driving the AI boom, as governments worldwide work to establish safeguards against the risks posed by artificial intelligence. Leading the effort is the European Union’s AI Act, a sweeping regulatory framework for AI systems.Last month, Suchir Balaji, a 26-year-old former OpenAI researcher turned whistleblower, died in San Francisco in a suspected suicide, according to local authorities. The San Francisco Police Department said they found Balaji dead inside his apartment on Buchanan Street after being called to the property for a well-being check at around 1 p.m. on November 26, The Mercury News reported.The past few years have seen dramatic improvements in the capabilities of AI-powered chatbots, like OpenAI’s ChatGPT, which rely on large language models to produce content for users. However, the process has also been controversial with some publishers accusing OpenAI of using copyrighted works without permission, and a number of legal cases are currently ongoing.What People Are Saying”When the Garante ordered us to stop offering ChatGPT in Italy in 2023, we worked with them to reinstate it a month later,” a spokesperson for OpenAI said on Friday in an emailed statement. “They’ve since recognized our industry-leading approach to protecting privacy in AI, yet this fine is nearly 20 times the revenue we made in Italy during the relevant period.”The company also noted in its statement that OpenAI remains “committed to working with privacy authorities worldwide to offer beneficial AI that respects privacy rights.”What’s NextOpenAI also called the decision “disproportionate” and confirmed it plans to appeal. It is unclear how the Italian watchdog will respond to the appeal.This article includes reporting from The Associated Press.

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