Italy’s data protection authority has imposed a hefty fine of 15 million euros (approximately $15.6 million) on OpenAI following investigations into the collection of personal data by its renowned chatbot, ChatGPT.

The Garante, Italy’s privacy authority, stated that their inquiry revealed OpenAI had processed personal user data to develop ChatGPT without a sufficient legal justification. This action reportedly breached transparency principles and failed to inform users adequately about how their data is being utilized.

In response to the decision, OpenAI labeled the fine as “disproportionate” and indicated plans to contest the ruling. An OpenAI representative commented on the situation, recalling a previous incident when the Garante had required the company to suspend ChatGPT services in Italy earlier this year. OpenAI collaborated with the watchdog to restore the service a month later. The spokesperson noted that despite the authority’s acknowledgment of their leading privacy practices within the AI industry, the fine was significantly larger than the total revenue generated by OpenAI in Italy during the examination period.

OpenAI, however, reaffirmed its dedication to collaborating with global privacy regulators to develop AI technologies that honor users’ privacy rights.

Moreover, the investigation uncovered that OpenAI had not implemented a robust age verification system to ensure that children under 13 were protected from accessing unsuitable AI-generated material. As a result, the Italian regulator instructed OpenAI to conduct a six-month public awareness campaign across different Italian media platforms regarding ChatGPT’s data collection practices.

The growing popularity of generative AI systems, such as ChatGPT, has heightened scrutiny from regulators in both the United States and Europe. Authorities on both sides of the Atlantic have been closely examining OpenAI, alongside other pivotal players in the AI landscape, as governments worldwide work to establish regulations aimed at mitigating the risks associated with AI technologies. The European Union’s AI Act is at the forefront of these regulatory efforts, serving as an extensive framework for artificial intelligence oversight.