Italy fines ChatGPT €15 million

The Italian Data Protection Authority fined OpenAI 15 million euros for the unlawful use of personal data through its program, ChatGPT.

The authority, which protects fundamental rights related to personal data processing, indicated that the fine was reduced due to OpenAI's cooperation during the investigation.

The authority criticized OpenAI for failing to report a data breach that occurred in March 2023, labeling this a violation of transparency regulations and user notification laws.

Additionally, it noted that the company used personal data to train its AI model without a legal basis to justify the practice.

The two-year investigation found that OpenAI lacked an effective age verification system, which allowed children under 13 to access inappropriate AI-generated content.

Alongside the fine, the authority mandated that OpenAI launch a six-month awareness campaign to educate the public about how ChatGPT functions. Notably, the Italian Data Protection Authority temporarily banned ChatGPT in March 2023 due to potential privacy violations, making Italy the first Western nation to take such action against the platform.

In response, OpenAI labeled the fine as "disproportionate" and announced its intention to appeal the decision.

The company stated that it had worked with Italian authorities to resume service following a one-month suspension, emphasizing that the fine exceeds its total revenue in Italy during the relevant period by approximately twenty times.

OpenAI expressed concern that the Italian authority's position "threatens the country's ambitions in the AI sector" but reaffirmed its commitment to collaborating with privacy regulators worldwide to ensure that AI technologies are developed in a manner that respects privacy rights.