Trento was the first local administration in Italy to be sanctioned by the GPDP watchdog for using data from AI tools. The city has been fined a sum of 50,000 euros (454,225). Trento has also been urged to take down the data gathered in the two European Union-sponsored projects. 

The privacy watchdog, known to be one of the most proactive bodies deployed by the EU, for evaluating AI platform compliance with the bloc's data protection regulations temporarily outlawed ChatGPT, a well-known chatbot, in Italy. In 2021, the authority also reported about a facial recognition system tested under the Italian Interior Ministry, which did not meet the terms of privacy laws.

Concerns around personal data security and privacy rights have been brought up by the rapid advancements in AI across several businesses.

Following a thorough investigation of the Trento projects, the GPDP found “multiple violations of privacy regulations,” they noted in a statement, while also recognizing how the municipality acted in good faith.

Also, it mentioned that the data collected in the project needed to be sufficiently anonymous and that it was illicitly shared with third-party entities. 

“The decision by the regulator highlights how the current legislation is totally insufficient to regulate the use of AI to analyse large amounts of data and improve city security,” it said in a statement.

Moreover, in its presidency of the Group of Seven (G7) major democracies, the government of Italy which is led by Prime Minister Giorgia Meloni has promised to highlight the AI revolution.

Legislators and governments in the European Union reached a temporary agreement in December to regulate ChatGPT and other AI systems, bringing the technology one step closer to regulations. One major source of contention concerns the application of AI to biometric surveillance.