International Tax Panorama

Italy temporarily blocked access to ChatGPT, and now the country’s data privacy regulator said it would begin an investigation into the company behind the popular chatbot, OpenAI.

In a news release, the Italian Data Protection Authority ordered the immediate ban on ChatGPT in the country and listed its concerns with the chatbot. 

No legal basis for Personal Data Collection

The Italian privacy regulator stated that there is no legal basis that justifies the collection and mass storage of personal data OpenAI uses to train the AI. Furthermore, the regulator added that OpenAI provides little information to users whose data it collects. The regulator alleges OpenAI is violating the European Union’s privacy law, the General Data Protection Regulation, or GDPR.

Incorrect Processing of Personal Data:

However, OpenAI’s data collection practices aren’t the only thing under the spotlight here. The Italian privacy regulator pointed out that the information provided by ChatGPT doesn’t always correspond to the facts in the real data, thereby resulting in the “incorrect processing of personal data,” which is illegal under GDPR. OpenAI acknowledges that this can occur in its FAQ section, where it states that “ChatGPT will occasionally make up facts or ‘hallucinate’ outputs.”

No Age Verification Filter 

The Italian privacy regulator was also unhappy with OpenAI’s lack of any age verification filter ChatGPT, even though the service is meant to be used by people 13 years of age and older. It stated that ChatGPT exposes minors to unsuitable answers for their degree of development and self-awareness.

Future Course of Action

Now OpenAI has 20 days to respond to the Italian privacy regulator and provide the measures it has taken in response to the regulator’s concerns. Failure to do so could result in a fine of up to €20 million or up to 4% of annual global turnover.

Related issues with AI :

The Italian ChatGPT ban comes just days after a coalition of more than 500 experts published an open letter asking AI labs to pause all training on AI systems for at least six months. The letter’s signatories included Apple co-founder Steve Wozniak and Elon Musk, who co-founded OpenAI back in 2015 but has since cut ties with the company.

“Advanced AI could represent a profound change in the history of life on Earth, and should be planned for and managed with commensurate care and resources,”

“Unfortunately, this level of planning and management is not happening, even though recent months have seen AI labs locked in an out-of-control race to develop and deploy ever more powerful digital minds that no one—not even their creators—can understand, predict, or reliably control.”