OpenAI under Scrutiny Yet Again As another Complaint Has Been Filed In the EU

GDPR governs the processing of personal data of regional users, with penalties for compliance failures

OpenAI is facing yet another complaint within the European Union, as privacy rights nonprofit noyb files a grievance against its AI chatbot, ChatGPT. The complaint, filed on behalf of an individual complainant, centers on the chatbot's inability to rectify misinformation it generates about individuals. GenAI tools, including ChatGPT, have been notorious for producing inaccurate information. However, this collision with the EU's General Data Protection Regulation (GDPR) poses significant challenges for OpenAI. GDPR governs the processing of personal data of regional users, with penalties for compliance failures potentially reaching up to 4% of global annual turnover.

OpenAI's previous encounter with Italy's data protection authority in 2023 led to temporary shutdowns of ChatGPT, prompting the company to make adjustments. Now, noyb is pursuing a GDPR complaint with the Austrian data protection authority on behalf of an unnamed complainant, described as a "public figure," whose birth date was inaccurately represented by the AI chatbot. Under GDPR, individuals in the EU have the right to correct erroneous data, a right that noyb argues OpenAI is failing to uphold. Despite the complainant's request for correction, OpenAI allegedly claimed it was technically impossible to rectify the misinformation. However, GDPR rights are not selective, and individuals have the right to request both rectification and deletion of their data.

The dispute underscores the complex intersection between AI technology and data protection laws, with potential implications for how generative AI tools can operate within the EU. OpenAI faces the challenge of navigating these regulations while maintaining the functionality of its AI platforms.