The Italian Data Protection Authority Imposed a 15 Million Euro Fine on OpenAI

Italy’s Data Protection Authority announced that it had imposed an irrevocable 15 million Euros (₦24 billion) fine on OpenAI, after closing an investigation into the illegal collection of private data by the US-based artificial intelligence company.

The nation’s data privacy watchdog, Garante, said its findings revealed that the US company processed users’ private  data to train and manage its generative AI chatbot, without first having an “adequate legal basis and violated the principle of transparency and the related information obligations towards users.”

It also stated that OpenAI has yet to release its condition for age verification, which, according to the DPA, will have a negative impact on minors under age 13, as they would be exposed to responses that are inadmissible for their level of participation, self-awareness and mental development.

In addition to the fine imposed on the company, the Italian DPA with the aim of ensuring effective transparency in private data collection, ordered OpenAI to carry out a 6-month campaign on Italian media outlets to raise public attention about how ChatGPT works, especially as regards to data collection of users and non-users to manage algorithms.

In response to the announcement, OpenAI said the fine was “disproportionate” and that the company plans to file an appeal against the decision.