Italy’s data protection authority, Garante, has fined OpenAI €15 million ($15.6 million) after concluding that the company’s popular AI chatbot, ChatGPT, violated privacy laws. The investigation found that OpenAI processed personal data to train ChatGPT without proper legal grounds, violating transparency and information obligations to users.

The Garante's investigation revealed that OpenAI failed to adequately inform users about how their personal data was being used. Additionally, the company did not ensure that the data processing was lawful, leading to the hefty fine imposed by the authority.

OpenAI, however, has expressed disagreement with the fine, calling it “disproportionate” and announced plans to appeal the decision. In a statement, an OpenAI spokesperson highlighted the company’s previous cooperation with the Garante when the authority temporarily banned ChatGPT in 2023. “We worked with them to reinstate it a month later,” the spokesperson stated. OpenAI argued that the fine is significantly larger than the company’s revenue in Italy during the period of concern.

In addition to the fine, the investigation found that OpenAI had not implemented an effective age verification system. This exposed users under the age of 13 to potentially harmful AI-generated content. This aspect of the investigation underscores growing concerns over AI’s impact on privacy and safety, especially for younger users.

As part of the ruling, the Garante has ordered OpenAI to launch a six-month public awareness campaign in Italy. The campaign is aimed at educating the public about the data collection practices of ChatGPT. It will focus on how personal information is processed and the importance of user consent.

The scrutiny on OpenAI and other AI companies comes amid the rapidly growing use of generative AI systems like ChatGPT. These tools, which create text, images, and other content based on user input, have raised significant concerns among regulators in both the U.S. and Europe. Governments worldwide are now working to establish legal frameworks to address the risks associated with AI, with the European Union’s AI Act standing out as a leading regulatory effort.

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