Italian regulator accuses OpenAI of violating data protection laws

The Italian Data Protection Authority (IDPA) has accused OpenAI of allegedly breaching privacy and data protection rules in the European Union (EU).

In a statement issued by the IDPA, it alleges OpenAI’s ChatGPT violates the provisions of the EU General Data Protection Regulation (GDPR), the regional bloc’s rule book on information privacy.

The IDPA’s submission comes on the heels of a “fact-finding” mission in late 2023 to investigate allegations of data scraping by OpenAI. At the time, civil society organizations submitted petitions to the privacy watchdog alleging that the AI developer engaged in the collection of several amounts of personal data without the consent of holders.

It is important to note that the regulators’ statement is not a designation of guilt, with OpenAI having the right to launch a defense against the allegations. OpenAI has 30 days to submit any defenses or counterclaims to the report before the final determination of the matter.

However, the IDPA says it will incorporate the opinions of a regional task force comprising EU privacy regulators before making its final decision. The privacy authority is also seeking feedback from the academia, AI experts, and the general public regarding its scrutiny of OpenAI.

“Following the fact-finding investigation, the Authority reserves the right to take the necessary steps, also in an urgent matter,” said the IDPA.

Several options are available to the privacy watchdog, including the imposition of steep fines or even an outright ban of ChatGPT from Italy. In early 2023, the IDPA geo-restricted OpenAI in the country for gross violations of EU data rules, only lifting the ban after the company disclosed its internal data handling policies to the regulator.

Apart from a crackdown on AI firms, the Italian regulator slammed a $54,000 fine on the city of Trento for breaching privacy rules in an AI-backed research project.

Italy toughens stance on AI

As head of the G7 nations for the next 12 months, Italy says it will prioritize AI regulation, aiming to foster a collaborative approach toward rulemaking. Italy will seek to steer global policy toward job security amid the increasing adoption of generative AI tools in the workplace.

Gleaning from the lessons from the EU’s Markets in Crypto Assets (MiCA) law and its impact on digital assets, Italian Prime Minister Giorgia Meloni is eyeing the establishment of watertight rules to rein the operations of AI firms.

“I am hugely concerned about the impact of AI on the labor market,” said Meloni. “Today we are faced with a revolution where human intellect is in danger of being replaced.”

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