OpenAI Moves to Cushion Regulatory Risk in EU: Report

Artificial Intelligence startup OpenAI has made a proactive move to protect itself from any form of regulatory risk it might encounter within the European Union (EU).

OpenAI Subtly Navigating EU Privacy Policies

Around the world, there has been a very deep concern about how AI, especially through the use of OpenAI’s chatbot, ChatGPT collects and uses data from members of the public. These concerns have even landed the company in some troubled waters among some EU member states including Italy and Poland.

The privacy concerns the company faced from Italian regulators even led to it getting temporarily suspended from the region. Notably, the company has revised some of the information that controls user’s data.

In a bid to steer clear of additional challenges as it concerns privacy-related worries in the EU, OpenAI sent out an email to its users late last month that its data of users within the EU and Switzerland is now controlled by its Irish entity, the offshoot it launched back in September 2022.

“If you live in the European Economic Area (EEA) or Switzerland, OpenAI Ireland Limited, with its registered office at 1st Floor, The Liffey Trust Centre, 117-126 Sheriff Street Upper, Dublin 1, D01 YC43, Ireland, is the controller and is responsible for the processing of your Personal Data as described in this Privacy Policy,” the shared email reads according to TechCrunch report.

The OpenAI Ireland base is responsible for the firm’s compliance drive with respect to the European Economic Area’s General Data Protection Regulation (GDPR). While it is not fully licensed yet, the Irish operations will prevent the firm from facing other related scrutiny as it faced with the Italian regulators. This is because, under the GDPR rules, all complaints from other key jurisdictions have to be routed to the company’s base where its GDPR policy is in full effect.

According to OpenAI, users who do not like the new terms may choose to delete its application or stop using its service.

New Year, No New Drama

OpenAI gave quite the spectacle last year with the failed removal of the company’s co-founder and CEO, Sam Altman. The board that tried to oust him was eventually fired as employees and even OpenAI’s investors and partners frowned against the unethical show of power to oust Altman.

With the ordeal now passed with the return of Sam Altman as CEO, the company is doing all it can to avoid related drama this year, especially as it relates to its regulatory compliance in its key operational base.