The European Union is leading the way in regulating AI to protect privacy and ensure accountability. The EU AI Act, established in March 2024 underscore the EU’s proactive approach to balancing innovation with the protection of fundamental rights. Recent actions by one of its regulatory bodies, includes a significant €15 million fine on OpenAI for GDPR violations, highlight the EU’s commitment to enforcing stricter data privacy standards.
The European Union's regulator, Garante, has imposed a hefty fine of €15 million on OpenAI for privacy breach. Garante pointed out that OpenAI processed vast amounts of personal data to train the ChatGPT algorithm without adequately informing users, thereby infringing on their privacy rights. This action comes as part of efforts to enforce stricter data privacy regulations under GDPR, highlighting the EU’s proactive stance in safeguarding user data and privacy.
EU Artificial Intelligence Act:
The law was passed on 13 March 2024. This Act classifies AI systems based on risk:
• unacceptable risk systems (e.g., social scoring) are banned
• high-risk systems face strict regulations
• limited risk systems have transparency requirements (e.g., chatbots)
• minimal risk systems (e.g., spam filters) are largely unregulated.
Obligations of compliance with safety, transparency, and accountability standards, primarily target developers of high-risk AI, including those outside the EU- if their systems are used within the EU. General-purpose AI providers must document usage, ensure copyright compliance, and manage systemic risks through evaluations, testing, and cybersecurity measures. The Act ensures safe and ethical AI deployment.
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