The recent ban on OpenAI’s ChatGPT in Italy has set a worrying precedent not just for the country itself, but for AI startups and European businesses overall. Prompted by a data breach on March 20 and the lack of an age verification system for children, the Italian data protection agency, Garante, blocked access to the AI system in Italy to investigate violations of personal data collection laws.
OpenAI, the US-based AI company responsible for the system, was taken by surprise by Garante’s decision and has since ceased its services in Italy. Other organizations, such as the European Consumer Organization and AI experts from DeepMind and Elon Musk, have called for further investigation and stricter regulation of AI systems. If left unchecked, the technology can lead to detriment for both businesses and consumers.
The ban has resulted in a potential loss of economic opportunities for Italian tech businesses, as the potential for growth and innovation has been hindered by the restriction. Companies that have relied on the technology, such as SaaS ecommerce startup Sellix and Milan-based travel scaleup WeRoad, have been forced to prepare contingency plans or find alternative markets.
The action taken by the Italian regulator and the surrounding discourse serve to underscore the importance of transparent and coordinated regulation of AI within the European Union. The upcoming EU AI Act, which aims to balance safety and innovation, is a step in the right direction. With the right tools in place, it is now up to all stakeholders to ensure AI and its potential for harm is managed responsibly.
