Italy Bans Use of ChatGPT, Slaps 20 Million Euro Fine on OpenAI For Violating GDPR

Italy’s data privacy regulator has put a temporary ban on ChatGPT on Friday, opening an investigation against OpenAI, the company behind the popular chatbot.

The Italian Data Protection Authority, through a press release, announced an immediate ban on using the AI chatbot in the country, listing various concerns about the generative AI chatbot. The primary objection is that there is no legal basis justifying the collection and mass storage of the data which is used to train OpenAI‘s GPT model.

Additionally, the regulator said OpenAI does not reveal too much information about whose data it collects to train its generative AI model. The regulator alleged that OpenAI is violating Europe’s data privacy laws, including the General Data Protection Regulation, or GDPR.

However, the ban will not be permanent. It will only be in place till the regulator is able to determine whether the chatbot complies with GDPR.

The Italian data regulator also pointed out the fact that ChatGPT does not always provide accurate information to users. Some facts generated by the chatbot are not real, violating GDPR’s tenet against incorrect processing of personal data.

OpenAI too has acknowledged the inaccuracy in ChatGPT’s responses, stating in its FAQ section, that ChatGPT “will occasionally make up facts or ‘hallucinate’ outputs.”will occasionally make up facts or ‘hallucinate’ outputs.”

The regulator also alleged ChatGPT does not have any age verification mechanism, even though it is meant to be used by users above 13 years of age. The regulator alleged the chatbot exposes minors to unsuitable content for their age.

The regulator has given OpenAI 20 days to respond to the allegations, and provide measures it has taken to assuage the regulator’s concerns. Failure to do so may result in a fine of up to 20 million euros, or up to 4% of its annual global revenues.

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