Social Europe

  • EU Forward Project
  • YouTube
  • Podcast
  • Books
  • Newsletter
  • Membership

Generative AI needs more than a light touch

Antonio Aloisi and Valerio De Stefano 25th April 2023

Chatbots such as ChatGPT raise huge data-protection and moral questions regulators must address.

generative AI,ChatGPT,OpenAI
The ‘gee-whiz’ promotion of ChatGPT cannot mean OpenAI gets a regulatory free pass (rafapress/shutterstock.com)

Italian users cannot gain access to ChatGPT. The chatbot based on artificial intelligence, launched in November 2022, is now geo-blocked in the country. At the end of last month, following an investigation, the Italian Data Protection Authority (DPA, also known as the Garante), adopted a landmark precautionary order to limit temporarily the local processing of Italian users’ data by OpenAI, the company based in the United States developing and managing the platform.

Mainstream media outlets and even powerful ministers lamented the DPA’s move as reckless. Technology pundits and start-uppers accused it of conspiring against the country’s global competitiveness. The story is however more complicated—and, with Spain and the European Union’s data watchdog adding to the scrutiny, offers important lessons.

‘Privacy nightmare’

All over the world, broad concerns are emerging about the nefarious consequences and ‘risks to society’ posed by generative-AI models, prompting experts and business leaders to call for a moratorium on updates, to favour research and implement safety protocols. While to those enthralled by ‘digital enchantment’ this cautious approach may seem a neo-Luddite plot ignited in academic and policy circles, it is about fundamental values in democratic societies. Indeed, technology companies are often accorded ‘a regulatory latitude not given to other sectors’.

As experts have demonstrated, large language models (LLMs) represent ‘a privacy nightmare’. They are based on processing gigantic swaths of data, scraped from undisclosed sources. This critically relies on a free underlying infrastructure of personal data, in some cases even proprietary or copyrighted—never mind the sensitive data which may be lightheartedly shared by users when interacting with these systems.

Professionals are starting to use generative-AI applications as low-cost assistants. The information they enter—a draft employment contract, a budgetary report to revise or top-secret data—could be the output for others’ queries. Such privacy nihilism is troubling.

Data breaches

On March 22nd, the chief executive of OpenAI, Sam Altman, tweeted that it ‘had a significant issue in ChatGPT due to a bug in an open source library’. In other words, some users had full access to the titles of other users’ conversation histories where chats are stored. The company admitted to ‘feel[ing] awful about this’. A similar data breach was reported regarding information on payments by subscribers.

Both glitches ‘seemed to indicate that OpenAI has access to user chats’, the BBC reported from San Francisco. In a parallel reality, this invasion of informational self-determination would not go unnoticed, causing public outrage and reputational damage. Not for the first time however, a purported corporate ‘disruptor’ appeared to enjoy a huge ‘get out of jail’ card.

The Italian DPA notified ChatGPT about a set of serious infringements. First, the company had provided no information to users and data subjects whose data were collected by OpenAI (as required by article 13, General Data Protection Regulation). Secondly (and remarkably), it had not identified any robust lawful basis for the massive collection and processing of personal data (article 6, GDPR).

Thirdly, it had shown lack of respect for accuracy: the chatbot was inclined to make up details which proved false. Finally, the absence of any age-verification mechanism might expose children to responses inappropriate to their age and awareness, while the service was only addressed to users aged over 13 according to OpenAI’s terms.

Clearly mandated

The reaction of Altman was patronising. Nevertheless, the issues raised by the Garante were clearly mandated by the EU GDPR. Utilising its prerogatives ‘to impose a temporary or definitive limitation including a ban on processing’ (article 58(2)(f), GDPR), it set an example other national authorities may soon follow.

OpenAI was given weeks to explain how it intended to come within European guardrails. It however decided to discontinue its service in Italy. The move has sparked uncertainty for all operators in the field. Yet, after a meeting between the company and the DPA, several conditions to be met by the end of April were identified for the ban to be lifted. Should it fail to demonstrate that the ‘legitimate interest’ or ‘consent’ criteria are fulfilled, the company could face fines, sanctions or a definitive ban.

OpenAI’s reaction is typical of some technology companies when they believe they can sidestep universal constraints: selectively withdraw from a market, blame the regulator and mobilise users (and others who fall for this pitch) to defend a service operating free of constraint. It recalls the dawn of the platform era, when food-delivery and other gig-economy players circumvented legislation under the strange assumption that an innovation was only genuine if retrospective forgiveness, not advance permission, was sought for it. It remains to be seen what the response will be, considering that analogous controversies may soon emerge, after the launching by the European Data Protection Board of a dedicated task force ‘to foster cooperation and to exchange information on possible enforcement actions’.

Light-touch approach

The proposed EU regulation on AI envisages minimum transparency obligations for specific systems—in particular where chatbots or ‘deep fakes’ are used. The draft text was presented in April 2021 and is undergoing legislative scrutiny.

The advent of complex, generative-AI models however shows the need for a broad comprehension of AI, whose application can be malign as well as benign. The risks include mass misinformation, the generation of prejudiced and stereotypical content and large-scale manipulation (otherwise prohibited in the proposed regulation). This reckoning should push EU co-legislators to reconsider the light-touch approach, with only notification obligations for lower-risk systems.

We have argued that, despite the aim of delivering a modular and targeted framework, AI technologies are classified in an ‘abstract’ and ‘context-neutral’ manner within the regulation as drafted, with no consideration of case-specific uses. This fails to appreciate the multi-purpose, versatile and adaptive nature of AI systems. Aside from the developers’ duties, the framework only barely addresses the progressive widening of the use of systems beyond the purposes for which they were originally intended and designed. The co-legislators should consider the general approach of the Council of the EU, adding provision for situations where AI systems can be used for many different purposes.

There is another, often neglected, dimension to this. The sociologists Jenna Burrell and Marion Fourcade have written that ‘what stands beneath the fetish of AI is a global digital assembly line of silent, invisible men and women, often laboring in precarious conditions, many in postcolonies of the Global South’. And a Time investigation has documented that OpenAI depends on the exploitation of Kenyan, Ugandan and Indian workers.

To reduce toxic and unsafe content, the company outsourced labelling to a San Francisco-based firm, Sama, whose contracted-out workers had to tag situations such as ‘child sexual abuse, bestiality, murder, suicide, torture, self harm, and incest’ as inappropriate material. These labelling, classifying and filtering tasks were remunerated at between $1.32 and $2 per hour, according to roles and seniority.

Enormous concerns

ChatGPT and its sisters, such as DALL·E, Synthesia and MusicLM, raise enormous technological, ethical, social, environmental and political concerns. The DPA simply addressed the challenge from the perspective of data protection, which at the moment is one of the few sets of operating rules to target the very first phases of the AI lifecycle. Non-European tech firms dealing with EU-based data subjects must follow the same rules as European companies.

OpenAI’s first response lacks moral scruple. Imagine a car company failing to provide mandatory seat belts in its cars and being so alerted by a national transport authority. How should one judge a corporate choice to quit selling cars in the country rather than remedy the error?

The norm-breaking ethos of technology companies must be tackled with less lenient responses, not allowing vague pro-innovation rhetoric to go uncontested. Digital progress may well improve the way we live, work, learn and interact with one another. But emerging technologies must be governed in such a way as to achieve socio-economic sustainability.

Antonio Aloisi
Antonio Aloisi

Antonio Aloisi is a professor of European and comparative labour law and digital transformation researcher at IE University Law School, Madrid. He co-authored Your Boss Is an Algorithm (Hart, 2022) and advises institutions on algorithmic management and AI-at-work policy.

Pics2
Valerio De Stefano

Valerio De Stefano is a law professor at Osgoode Hall School, York University, Toronto.

Harvard University Press Advertisement

Social Europe Ad - Promoting European social policies

We need your help.

Support Social Europe for less than €5 per month and help keep our content freely accessible to everyone. Your support empowers independent publishing and drives the conversations that matter. Thank you very much!

Social Europe Membership

Click here to become a member

Most Recent Articles

u421983467f bb39 37d5862ca0d5 0 Ending Britain’s “Brief Encounter” with BrexitStefan Stern
u421983485 2 The Future of American Soft PowerJoseph S. Nye
u4219834676d582029 038f 486a 8c2b fe32db91c9b0 2 Trump Can’t Kill the Boom: Why the US Economy Will Roar Despite HimNouriel Roubini
u42198346fb0de2b847 0 How the Billionaire Boom Is Fueling Inequality—and Threatening DemocracyFernanda Balata and Sebastian Mang
u421983441e313714135 0 Why Europe Needs Its Own AI InfrastructureDiane Coyle

Most Popular Articles

startupsgovernment e1744799195663 Governments Are Not StartupsMariana Mazzucato
u421986cbef 2549 4e0c b6c4 b5bb01362b52 0 American SuicideJoschka Fischer
u42198346769d6584 1580 41fe 8c7d 3b9398aa5ec5 1 Why Trump Keeps Winning: The Truth No One AdmitsBo Rothstein
u421983467 a350a084 b098 4970 9834 739dc11b73a5 1 America Is About to Become the Next BrexitJ Bradford DeLong
u4219834676ba1b3a2 b4e1 4c79 960b 6770c60533fa 1 The End of the ‘West’ and Europe’s FutureGuillaume Duval
u421983462e c2ec 4dd2 90a4 b9cfb6856465 1 The Transatlantic Alliance Is Dying—What Comes Next for Europe?Frank Hoffer
u421983467 2a24 4c75 9482 03c99ea44770 3 Trump’s Trade War Tears North America Apart – Could Canada and Mexico Turn to Europe?Malcolm Fairbrother
u4219834676e2a479 85e9 435a bf3f 59c90bfe6225 3 Why Good Business Leaders Tune Out the Trump Noise and Stay FocusedStefan Stern
u42198346 4ba7 b898 27a9d72779f7 1 Confronting the Pandemic’s Toxic Political LegacyJan-Werner Müller
u4219834676574c9 df78 4d38 939b 929d7aea0c20 2 The End of Progess? The Dire Consequences of Trump’s ReturnJoseph Stiglitz

Foundation for European Progressive Studies Advertisement

Spring Issues

The Spring issue of The Progressive Post is out!


Since President Trump’s inauguration, the US – hitherto the cornerstone of Western security – is destabilising the world order it helped to build. The US security umbrella is apparently closing on Europe, Ukraine finds itself less and less protected, and the traditional defender of free trade is now shutting the door to foreign goods, sending stock markets on a rollercoaster. How will the European Union respond to this dramatic landscape change? .


Among this issue’s highlights, we discuss European defence strategies, assess how the US president's recent announcements will impact international trade and explore the risks  and opportunities that algorithms pose for workers.


READ THE MAGAZINE

Hans Böckler Stiftung Advertisement

WSI Report

WSI Minimum Wage Report 2025

The trend towards significant nominal minimum wage increases is continuing this year. In view of falling inflation rates, this translates into a sizeable increase in purchasing power for minimum wage earners in most European countries. The background to this is the implementation of the European Minimum Wage Directive, which has led to a reorientation of minimum wage policy in many countries and is thus boosting the dynamics of minimum wages. Most EU countries are now following the reference values for adequate minimum wages enshrined in the directive, which are 60% of the median wage or 50 % of the average wage. However, for Germany, a structural increase is still necessary to make progress towards an adequate minimum wage.

DOWNLOAD HERE

KU Leuven advertisement

The Politics of Unpaid Work

This new book published by Oxford University Press presents the findings of the multiannual ERC research project “Researching Precariousness Across the Paid/Unpaid Work Continuum”,
led by Valeria Pulignano (KU Leuven), which are very important for the prospects of a more equal Europe.

Unpaid labour is no longer limited to the home or volunteer work. It infiltrates paid jobs, eroding rights and deepening inequality. From freelancers’ extra hours to care workers’ unpaid duties, it sustains precarity and fuels inequity. This book exposes the hidden forces behind unpaid labour and calls for systemic change to confront this pressing issue.

DOWNLOAD HERE FOR FREE

ETUI advertisement

HESA Magazine Cover

What kind of impact is artificial intelligence (AI) having, or likely to have, on the way we work and the conditions we work under? Discover the latest issue of HesaMag, the ETUI’s health and safety magazine, which considers this question from many angles.

DOWNLOAD HERE

Eurofound advertisement

Ageing workforce
How are minimum wage levels changing in Europe?

In a new Eurofound Talks podcast episode, host Mary McCaughey speaks with Eurofound expert Carlos Vacas Soriano about recent changes to minimum wages in Europe and their implications.

Listeners can delve into the intricacies of Europe's minimum wage dynamics and the driving factors behind these shifts. The conversation also highlights the broader effects of minimum wage changes on income inequality and gender equality.

Listen to the episode for free. Also make sure to subscribe to Eurofound Talks so you don’t miss an episode!

LISTEN NOW

Social Europe

Our Mission

Team

Article Submission

Advertisements

Membership

Social Europe Archives

Themes Archive

Politics Archive

Economy Archive

Society Archive

Ecology Archive

Miscellaneous

RSS Feed

Legal Disclosure

Privacy Policy

Copyright

Social Europe ISSN 2628-7641