Italy’s privacy watchdog, Garante, has fined OpenAI €15 million) after an investigation into the generative artificial intelligence application ChatGPT’s handling of personal data. According to a Reuters report, the penalty comes as a result of violations concerning data privacy laws, particularly those outlined by the European Union’s General Data Protection Regulation (GDPR).
The Garante in its investigation found that OpenAI had been processing users’ personal data to train its ChatGPT model without a valid legal basis, violating EU privacy standards. Specifically, the authority noted that OpenAI had not provided users with the necessary transparency about how their data was being used, nor had it adequately informed users of their rights. This failure to adhere to the GDPR’s principles of transparency and consent led to the fine.
OpenAI has previously said that its practices comply with EU privacy regulations. It has expressed its commitment to addressing privacy concerns and ensuring that its AI services operate within the legal framework of the European Union.
This is not the first time OpenAI has faced regulatory scrutiny in Italy. Last year, the Garante briefly banned ChatGPT in Italy over similar privacy concerns. The ban was lifted only after OpenAI took steps to comply with EU privacy laws, including implementing features that gave users the ability to refuse consent for their personal data to be used for training purposes.
The Italian privacy authority is known for its robust approach to regulating the use of AI in line with the EU’s data protection rules. As one of the most proactive regulators in Europe, the Garante has been closely monitoring the growing role of AI platforms and their compliance with data privacy laws.