Italy's data protection watchdog, Garante, has imposed a significant €15 million ($15.6 million) fine on OpenAI for multiple privacy violations related to ChatGPT. The regulatory action stems from a comprehensive investigation that revealed serious breaches of the European Union's General Data Protection Regulation (GDPR). Specifically, the authority found that OpenAI processed users' personal data to train ChatGPT "without having an adequate legal basis" and violated fundamental principles of transparency. The fine represents a critical moment in the ongoing scrutiny of artificial intelligence companies and their data collection practices.

The investigation uncovered two primary areas of concern for OpenAI. First, the company was found to have used personal data without proper consent or transparent information mechanisms for users. Second, and equally important, OpenAI failed to implement an "adequate age verification system" to prevent children under 13 from accessing potentially inappropriate AI-generated content. As a consequence of these findings, the Garante has mandated that OpenAI launch a six-month media campaign in Italy to raise awareness about its data collection practices and provide users with clear information about how they can oppose the use of their personal data in AI training.

This is not the first time OpenAI has faced regulatory challenges in Italy. In March 2023, the country became the first Western nation to temporarily ban ChatGPT, following similar privacy concerns. The current fine is nearly twenty times the revenue OpenAI generated in Italy during the relevant period, according to the company. OpenAI has characterized the decision as "disproportionate" and announced its intention to appeal the ruling. The company maintains that it remains committed to working with privacy authorities worldwide to develop AI technologies that respect privacy rights while continuing to offer beneficial innovations.

The fine represents a broader trend of increased regulatory scrutiny of artificial intelligence technologies across Europe and the United States. Regulators in multiple jurisdictions are actively examining OpenAI and other key players in the AI boom, with governments worldwide developing comprehensive frameworks to mitigate potential risks. The European Union is leading these efforts with the AI Act, a comprehensive regulatory framework designed to address the complex challenges posed by rapidly advancing artificial intelligence technologies. This action against OpenAI signals a growing determination by regulatory bodies to ensure that technological innovation does not come at the expense of individual privacy and data protection.