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Showing posts with label GDPR compliance. Show all posts
Technology
AI data residency AI regulations European data privacy GDPR compliance OpenAI Technology

OpenAI Introduces European Data Residency to Strengthen Compliance with Local Regulations

 

OpenAI has officially launched data residency in Europe, enabling organizations to comply with regional data sovereignty requirements while using its AI-powered services.

Data residency refers to the physical storage location of an organization’s data and the legal frameworks that govern it. Many leading technology firms and cloud providers offer European data residency options to help businesses adhere to privacy and data protection laws such as the General Data Protection Regulation (GDPR), Germany’s Federal Data Protection Act, and the U.K.’s data protection regulations.

Several tech giants have already implemented similar measures. In October, GitHub introduced cloud data residency within the EU for Enterprise plan subscribers. AWS followed suit by launching a sovereign cloud for Europe, ensuring all metadata remains within the EU. Google also introduced data residency for AI processing for U.K. users of its Gemini 1.5 Flash model.

Starting Thursday, OpenAI customers using its API can opt to process data in Europe for "eligible endpoints." New ChatGPT Enterprise and Edu customers will also have the option to store customer content at rest within Europe. Data "at rest" refers to information that is not actively being transferred or accessed across networks.

With European data residency enabled, OpenAI will process API requests within the region without retaining any data, meaning AI model interactions will not be stored on company servers. If activated for ChatGPT, customer information—including conversations, user inputs, images, uploaded files, and custom bots—will be stored in-region. However, OpenAI clarifies that existing projects cannot be retroactively configured for European data residency at this time.

"We look forward to partnering with more organizations across Europe and around the world on their AI initiatives, while maintaining the highest standards of security, privacy, and compliance," OpenAI stated in a blog post on Thursday.

OpenAI has previously faced scrutiny from European regulators over its data handling practices. Authorities in Spain and Germany have launched investigations into ChatGPT’s data processing methods. In December, Italy’s data protection watchdog — which had briefly banned ChatGPT in the past—fined OpenAI €15 million ($15.6 million) for alleged violations of consumer data protection laws.

The debate over AI data storage extends beyond OpenAI. Chinese AI startup DeepSeek, which operates a large language model (LLM) and chatbot, processes user data within China, drawing regulatory attention.

Last year, the European Data Protection Board (EDPB) released guidelines for EU regulators investigating ChatGPT, addressing concerns such as the lawfulness of training data collection, transparency, and data accuracy.
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Technology
AI in Europe AI innovation challenges AI regulation EU AI Act GDPR compliance GEDI media group Italian data protection OpenAI partnership Technology

Italy Warns Media Giant GEDI Over AI Data Partnership with OpenAI

 


Italy's data protection regulator, Garante per la Protezione dei Dati Personali, has cautioned GEDI, a leading Italian media group, to comply with EU data protection laws in its collaboration with OpenAI. Reuters reports that the regulator highlighted the risk of non-compliance if personal data from GEDI's archives were shared under a proposed agreement with OpenAI, the creator of ChatGPT.

Details of the GEDI-OpenAI Collaboration

The partnership, formed in September, would allow OpenAI to use Italian-language content from GEDI’s publications, including La Repubblica and La Stampa, to enhance its chatbot services. The regulator warned that the use of personal and sensitive data stored in digital archives requires stringent safeguards. “The digital archives of newspapers contain the stories of millions of people, with information, details, and even extremely sensitive personal data that cannot be licensed without due care for use by third parties to train artificial intelligence,” stated the Garante.

GEDI clarified that its agreement with OpenAI does not involve selling personal data. “The project has not been launched,” said GEDI. “No editorial content has been made available to OpenAI at the moment and will not be until the reviews underway are completed.” The company expressed hope for ongoing constructive dialogue with the Italian data protection authority.

Regulatory Concerns and AI Legislation

The case highlights growing tension between European regulators and major AI developers. The EU’s Artificial Intelligence Act (EU AI Act), effective from August 2024, sets strict guidelines for AI systems based on their risk levels. While the Act aims to ensure transparency and data privacy, critics argue it imposes burdensome constraints that could hamper innovation.

AI industry leaders have voiced frustration over Europe's regulatory environment. OpenAI’s CEO, Sam Altman, warned in 2023 that the company might "cease operating" in the EU if compliance proved too difficult. In September 2024, executives from Meta and other firms cautioned in an open letter that the EU’s strict tech policies risk undermining Europe’s competitiveness in AI development.

Wider Implications of the Scrutiny

The Italian regulator’s scrutiny of the GEDI-OpenAI partnership reflects broader EU attitudes toward AI regulation. While ensuring compliance with GDPR, such interventions exemplify Europe's cautious approach to AI innovation. Critics argue that this could slow progress in a field where other regions, such as the US and China, are advancing more aggressively.

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