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Italian authorities restrict ChatGPT over data breach and inadequate measures

In a major development, the Italian data protection agency GPDP has imposed temporary restrictions on the use of the AI language model “ChatGPT” for allegedly violating the General Data Protection Regulation (GDPR) of the EU.

The Italian SA has prohibited ChatGPT from processing data in breach of privacy laws and initiated an inquiry into the matter. OpenAI, the US-based company managing the platform, has been instructed to immediately limit the processing of Italian users’ data.

The decision follows a data breach reported on March 20, affecting ChatGPT users’ conversations and payment information. ChatGPT is one of the most popular relational AI platforms capable of emulating human conversations. However, the Italian SA highlights that the lack of transparency regarding data collection and processing violates the GDPR.

Moreover, the AI model sometimes processes inaccurate personal data, which raises concerns about the quality of the service. The lack of age verification is another issue that exposes children to inappropriate responses despite OpenAI’s claim that the platform is for users above 13 years of age.

OpenAI is not established in the EU, but it has designated a representative in the European Economic Area. The company has 20 days to comply with the order and notify the Italian SA of the measures taken, or face a fine of up to EUR 20 million or 4% of its total worldwide annual turnover.

This development has significant implications for AI platforms, especially those that rely on user-generated data for training their models. The order by the Italian SA emphasizes the importance of complying with GDPR regulations and ensuring transparency and accountability in data processing.

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