OpenAI Fined €15M for GDPR Violations=
Italy’s Data Protection Authority, better known as the Garante, has issued a €15 million fine to OpenAI-or $15.7 million-for breaches in European Union data protection regulations. The investigation looked at how ChatGPT handled user data and found that it had indeed violated the General Data Protection Regulation.
The investigation by the IDPA revealed that OpenAI had failed to inform authorities of a data breach in March 2023 and had not been transparent about data collection and processing. Such actions violated the legal basis for clarity and accountability required under the GDPR in processing personal information.
Public Awareness Campaign Ordered
Also part of the sanctions: the IDPA ordered OpenAI to run a six-month-long public awareness campaign. The public will be made aware of how ChatGPT comes into possession of data, what users’ rights are under GDPR, and other things.
“This campaign will increase public awareness of generative AI and allow individuals to make informed choices about their rights relating to data,” said the Garante.
Age Verification Issues
The IDPA also criticized OpenAI for insufficient age verification measures, which risked exposing minors under 13 to inappropriate or unsuitable content generated by ChatGPT.
“OpenAI’s lack of proper age controls undermines protections for vulnerable individuals, especially children”, the authority added.
Cooperation and Future Oversight
The Garante said that OpenAI cooperated during the investigation, resulting in a fine that’s lower than what it would have otherwise been. Additionally, recently OpenAI moved its European headquarters to Ireland; so, further oversight of those activities has fallen to Ireland’s DPC.
This decision by the IDPA has wrapped up with the formal opinion issued Dec. 18 by the EDPB that AI models leveraging personal information need increased scrutiny.
Leadership from Italy on the Use of AI
So far, Italy has been in the vanguard as far as the regulation of artificial intelligence goes. In March 2023, it issued a temporary block on ChatGPT, becoming the first Western country to do so over privacy concerns. It lifted the ban in April after OpenAI introduced demanded transparency measures.
The case indicates increasing scrutiny for AI technologies amidst a growing balance of innovation and compliance in an increasingly regulated world.
