Italian regulators have issued a ban on the use of ChatGPT, an AI chatbot created by OpenAI, over alleged violations of data privacy laws. The ban comes as a result of an investigation conducted by the Italian Data Protection Authority (GPDP), which accused OpenAI of unlawfully collecting personal data from Italian users.
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According to the GPDP, OpenAI lacked lawful justification for the collection of personal information and had no mechanism in place to prevent underage users from accessing the service. The regulator stated that this exposed minors to “absolutely unsuitable answers compared to their degree of development and self-awareness.”
This is not the first time that Italy’s data watchdog has taken action against an AI chatbot. Earlier this year, the regulator banned the chatbot app Replika.ai for similar reasons, including failure to properly process data and safeguard minors.
OpenAI has been given 20 days to comply with the order to stop processing Italian users’ data. Failure to do so could result in fines of up to €20 million (or 4% of annual global turnover).
AI Hype
– In 2020, global spending on AI technology was forecast to reach $58 billion, with the largest share going to AI-enabled applications, according to IDC.
– A survey by Deloitte found that 80% of respondents were concerned about the privacy implications of using AI, and 63% said they would be more willing to use AI-powered services if they had more control over their personal data.
– A report by PwC estimated that AI could contribute up to $15.7 trillion to the global economy by 2030.
– The Italian Data Protection Authority (GPDP) has issued fines totaling €115 million for data privacy violations since the implementation of GDPR in 2018, according to a report by DLA Piper.
– According to a study by Statista, the global chatbot market is projected to reach $9.4 billion by 2024, up from $2.6 billion in 2019, with customer service being the largest application for chatbots.
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