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Technology
09 April 2025

ChatGPT's Rise Sparks Privacy Concerns Amid Legal Scrutiny

As AI adoption grows, users face challenges in protecting their data privacy and understanding ownership rights.

ChatGPT, the most widely used AI application, is gaining traction with 81% of users according to the Bavarian Research Institute for Digital Transformation (bidt). However, this rapid rise in popularity raises significant privacy concerns. As users engage with this tool, many are left wondering what happens to their data and whether they can protect their privacy while using it.

ChatGPT processes a variety of data, including user requests, personal information, and uploaded files, which can be utilized for training the AI. OpenAI, the organization behind ChatGPT, states that the data provided by users is primarily used to respond to inquiries and enhance the AI's capabilities. However, unless users actively opt out, their data can be used for training future models.

When it comes to ownership of the content generated by ChatGPT, users retain usage rights but do not hold copyright in the traditional sense. This legal ambiguity complicates matters, particularly in regions like Germany, where AI-generated content is often deemed unprotected due to the absence of human authorship.

The question of whether ChatGPT is compliant with data protection regulations is a pressing one. The tool operates in a legal gray area, with critics arguing that it processes vast amounts of personal data without obtaining necessary consent. The Italian data protection authority's decision to block ChatGPT in March 2023 highlighted these concerns, citing violations such as inadequate information on data processing and insufficient safeguards against underage access.

After implementing enhanced data protection measures, ChatGPT was allowed to operate in Italy again in April 2023. This incident serves as a cautionary tale, demonstrating the need for transparency and accountability in AI applications.

In March 2025, OpenAI released an update allowing users to create images in the style of Studio Ghibli, which quickly became a viral trend. However, this feature also raised ethical questions. Users uploaded personal photos for transformation, often without the consent of those depicted, inadvertently contributing to a pool of data that could be used for further training.

Another significant incident occurred when Samsung employees entered sensitive corporate information into ChatGPT three times within just 20 days. This breach of privacy highlights the risks associated with using AI tools in professional settings, prompting Samsung to ban the use of ChatGPT on company devices.

As companies grapple with the implications of AI, the EU is taking steps to regulate its use through the AI Act, which was published on July 12, 2024, and came into force on August 1, 2024. This legislation categorizes AI applications based on their risk potential and imposes strict obligations on providers, particularly those offering high-risk systems.

The AI Act aims to promote human-centered AI while ensuring a high level of protection for health, safety, and fundamental rights. Companies that fail to comply with the regulations face hefty fines, potentially reaching up to 35 million euros or 7% of their global annual revenue for the most severe violations.

ChatGPT falls under the AI Act's regulations as a general-purpose AI model. While it is not classified as high-risk in its standard form, certain applications, such as those in healthcare or public administration, may elevate its risk status.

Users interacting with ChatGPT must be informed that they are engaging with an AI and that the content generated is AI-produced. OpenAI is required to provide technical documentation and implement risk management measures for the model.

To mitigate privacy risks when using ChatGPT, users can deactivate the option that allows their conversations to be used for training future AI models. This setting, found under “Data Controls,” can help protect sensitive information from being inadvertently shared.

Experts recommend that users only upload data for which they have consent and avoid sharing confidential information or trade secrets. By treating ChatGPT as a public forum, users can safeguard their privacy and minimize legal pitfalls.

As the landscape of AI continues to evolve, the balance between leveraging technological advancements and protecting personal data becomes increasingly critical. The rapid adoption of AI tools like ChatGPT presents both opportunities and challenges, and users must navigate these waters carefully to avoid potential pitfalls.

In conclusion, while ChatGPT offers remarkable capabilities for users, it also presents significant privacy risks that cannot be ignored. The incidents involving data breaches and the ongoing legal discussions surrounding AI underscore the importance of responsible usage and adherence to data protection principles.