OpenAI fined $15.5M by Italy over ChatGPT

The Italian Data Protection Authority (GPDP), an independent authority set up to protect fundamental rights and freedoms in connection with the processing of personal data, announced fining OpenAI, the American artificial intelligence (AI) research organization, over privacy violations related to ChatGPT, the generative artificial intelligence chatbot developed by OpenAI.

OpenAI fined over ChatGPT

OpenAI was fined by the Italian Data Protection Authority (GPDP) over privacy issued related to its chatbot ChatGPT. The company is required to pay approximately $15.5 million (15 million euros) for violating regulations and misusing users’ personal data.

Additionally, the GPDP stated that OpenAI failed to provide age verification for users, exposing children under the age of 13 to inappropriate responses and experiences while using the chatbot.

According to the Italian Data Protection Authority (GPDP), ChatGPT accessed user’s personal data “without having an adequate legal basis and violated the principle of transparency and the related information obligations towards users,” as reported.

OpenAI stated: “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.”

Notably, the Italian Data Protection Authority (GPDP) banned ChatGPT in Italy since March 2023, making it the first country to take action against OpenAI’s chatbot.