After a months-long investigation into the AI-based chatbot ChatGPT, Italian data protection authority OpenAI said the AI-based chatbot ChatGPT violates European data protection rules.
In a new statement, the Italian Data Protection Authority issued its preliminary findings regarding violations of European Union law, continuing the investigation that began last year.
The agency, called Garante, is one of the EU's proactive agencies working to evaluate whether AI platforms comply with EU data protection rules.
Last year, the agency banned ChatGPT for allegedly violating EU data protection rules.
Authorities have allowed an AI-powered chatbot to resume work after OpenAI fixed an issue with users refusing to consent to the company's use of personal data to train its algorithms.
Organizers said at the time that they were continuing their investigations. The company has now concluded that there is evidence of a possible data breach, the company said in a new statement, without providing further details.
OpenAI, which is backed by Microsoft, has 30 days to present its defense arguments, Garant said, adding that its investigation took into account the work of a European working group that included national data protection authorities.
The rapid growth of ChatGPT has attracted the attention of lawmakers and regulators, with Italy becoming the first country in Western Europe to restrict ChatGPT.
Under the European Union's General Data Protection Regulation, any company that violates the rules could face fines of up to 20 million euros, or 4% of its global sales.
The Data Protection Authority may issue an order requiring changes in data processing to stop the confirmed infringement.
As a result, OpenAI may have to change the way it operates or withdraw its services from EU member states as data protection authorities try to force changes that the company does not want.
EU lawmakers and governments in December agreed on preliminary terms for regulating artificial intelligence systems like ChatGPT, moving one step closer to setting rules for the technology.