OpenAI’s regulatory woes have barely started

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OpenAI’s regulatory troubles are only just beginning

to help coordinate investigations. And if these agencies demand changes from OpenAI, they could affect how the service runs for users across the globe.

Regulators’ concerns can be broadly split into two categories: where ChatGPT’s training data comes from and how OpenAI is delivering information to its users. ChatGPT uses either OpenAI’s GPT-3.5 and GPT-4 large language models , which are trained on vast quantities of human-produced text.exactly what training text is used but says it draws on “a variety of licensed, created, and publicly available data sources, which may include publicly available personal information.”

This potentially poses huge problems under GDPR. The law was enacted in 2018 and covers every service that collects or processes data from EU citizens — no matter where the organization responsible is based. GDPR rules require companies to have explicit consent before collecting personal data, to have legal justification for why it’s being collected, and to be transparent about how it’s being used and stored.

European regulators claim that the secrecy around OpenAI’s training data means there’s no way to confirm if the personal information swept into it was initially given with user consent, and the GPDP specifically argued that OpenAI had “no legal basis” for collecting it in the first place. OpenAI and others have gotten away with little scrutiny so far, but this claim adds a big question mark to future data scraping efforts.

 

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