The Italian Data Protection Authority (DPA) on Friday fined OpenAI, the creator of ChatGPT, 15 million euros ($15.66 million) for violations of data privacy laws by its artificial intelligence app.
The Italian watchdog, Garante Per La Protezione Dei Dati Personali, has ordered OpenAI to launch a six-month institutional communication campaign on radio, television, newspapers, and the Internet to raise public awareness about ChatGPT.
This campaign will specifically talk about OpenAI’s data collection practices from users and non-users to train its AI model and the rights exercisable by the users, including those of opposition, rectification, and cancellation.
“ChatGPT users and non-users should be made aware of how to oppose the training of generative artificial intelligence with their personal data and, therefore, be effectively placed in the position to exercise their rights under the General Data Protection Regulations (GDPR),” the Garante said in its news release.
The investigation, which began in March 2023, revealed several GDPR breaches by OpenAI, which included the company’s failure to promptly notify Garante of a data breach that exposed user information.
This lack of transparency delayed the authority’s ability to respond and safeguard affected individuals.
It was also found that OpenAI utilized users’ personal data to train ChatGPT “without first identifying an adequate legal basis and violated the principle of transparency and the related information obligations towards users.”
Additionally, OpenAI failed to implement age verification measures, raising concerns about exposing children under 13 to content inappropriate for their developmental stage and self-awareness.
Reacting to the recent fine, OpenAI dubbed the decision “disproportionate” and announced it would appeal.
“When the Garante ordered us to stop offering ChatGPT in Italy in 2023, we worked with them to reinstate it a month later. They’ve since recognized our industry-leading approach to protecting privacy in AI, yet this fine is nearly 20 times the revenue we made in Italy during the relevant period,” an OpenAI spokesperson said in an emailed statement.
However, OpenAI added it remained “committed to working with privacy authorities worldwide to offer beneficial AI that respects privacy rights.”
The recent fine imposed on OpenAI follows previous action against the company when the Garante had temporarily banned ChatGPT in the country in March 2023 over alleged violations of the European Union’s GDPR.
However, the platform was later restored after OpenAI introduced measures regarding user consent for data usage in AI training.
