OpenAI is a technology company focused on creating Artificial Intelligence (AI) with a mission to promote safe and responsible development of AI. Its quest for data related to AI has recently caused it to come under fire from data protection authorities in the west. It appears that its practice of collecting data off the internet to train its AI models, the most common practice in AI development, has led to questions about consent.
The European Union’s General Data Protection Regulation (GDPR) is one of the world’s strictest data protection regimes, making the stakes for OpenAI very high. Several western data protection authorities have started investigations into OpenAI, among them: the Italian data protection authority, France, Germany, Ireland, and Canada. The European Data Protection Board is also forming a task force to coordinate investigations and enforcement related to OpenAI’s chatbot, ChatGPT.
Italy has given OpenAI a deadline of April 30 to comply with the laws, otherwise risking a ban in the European Union and fines. OpenAI will have to prove they have the consent of people whose data is used, or that they have a “legitimate interest,” and in turn explain to people how their data is used and be able to correct any mistakes, erase data, and allow people to object to the use of their data.
This case could end up being an important test for the GDPR, and a likely candidate for the Court of Justice of the European Union. It is possible that whatever conclusion is reached from this could have far-reaching implications for AI companies and how they collect data. OpenAI must show transparency in their data practices and prove they are using one of two possible legal ways to collect traiining data in order to avoid a legal and financial dilemma.
The legal case against OpenAI has become a cautionary tale for the AI industry. While the desire for large amounts of training data has become a standard approach, it is important to be compliant with data protection regulations and make sure the data is collected legitimately. OpenAI will have to make sure it is going through the proper steps to collect its data ethically or it could face severe consequences.
