Italy Fines AI Chatbot Replika's Developer $5.6 Million for Data Privacy Violations
2 Sources
2 Sources
[1]
Italy's data watchdog fines AI company Replika's developer $5.6 million
MILAN, May 19 (Reuters) - Italy's data protection agency has fined the developer of artificial intelligence (AI) chatbot company Replika 5 million euros ($5.64 million) for breaching rules designed to protect users' personal data, the authority said on Monday. Launched in 2017, San Francisco-based startup Replika offers users customised avatars that can have conversations with them. The 'virtual friend' is marketed as being able to improve the emotional wellbeing of users. Italian privacy watchdog Garante ordered Replika to suspend its service in the country in February 2023, citing specific risks to children. Following an investigation, it found that Replika lacked a legal basis for processing users' data and had no age-verification system to restrict children from accessing the service, resulting in the fine for its developer, Luka Inc. Replika did not immediately respond to a Reuters request for comment. The Italian authority has also announced a separate investigation to assess whether Replika's generative AI system is compliant with European Union privacy rules, especially around the training of its language model. Garante is one of the European Union's most proactive regulators in assessing AI-platform compliance with the bloc's data privacy rules. Last year, it fined ChatGPT maker OpenAI 15 million euros after briefly banning the use of the popular chatbot in Italy in 2023 over the alleged breach of EU privacy rules. ($1 = 0.8868 euros) Reporting by Elvira Pollina; Editing by Cristina Carlevaro and Rachna Uppal Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Cybersecurity
[2]
Italy's data watchdog fines AI company Replika's developer $5.6 million
MILAN (Reuters) -Italy's data protection agency has fined the developer of artificial intelligence (AI) chatbot company Replika 5 million euros ($5.64 million) for breaching rules designed to protect users' personal data, the authority said on Monday. Launched in 2017, San Francisco-based startup Replika offers users customised avatars that can have conversations with them. The 'virtual friend' is marketed as being able to improve the emotional wellbeing of users. Italian privacy watchdog Garante ordered Replika to suspend its service in the country in February 2023, citing specific risks to children. Following an investigation, it found that Replika lacked a legal basis for processing users' data and had no age-verification system to restrict children from accessing the service, resulting in the fine for its developer, Luka Inc. Replika did not immediately respond to a Reuters request for comment. The Italian authority has also announced a separate investigation to assess whether Replika's generative AI system is compliant with European Union privacy rules, especially around the training of its language model. Garante is one of the European Union's most proactive regulators in assessing AI-platform compliance with the bloc's data privacy rules. Last year, it fined ChatGPT maker OpenAI 15 million euros after briefly banning the use of the popular chatbot in Italy in 2023 over the alleged breach of EU privacy rules. (Reporting by Elvira Pollina; Editing by Cristina Carlevaro and Rachna Uppal)
Share
Copy Link
Italy's data protection agency has imposed a €5 million fine on Luka Inc., the developer of AI chatbot Replika, for violating user data protection rules. The fine follows an investigation into the company's practices, particularly concerning children's access to the service.
Italy's Data Watchdog Cracks Down on AI Chatbot Replika
In a significant move highlighting the growing scrutiny of AI technologies, Italy's data protection agency, Garante, has imposed a €5 million ($5.64 million) fine on Luka Inc., the developer of the AI chatbot Replika. This action comes as part of a broader effort to enforce data privacy regulations in the rapidly evolving field of artificial intelligence 12.
Replika: The AI 'Virtual Friend'
Replika, launched in 2017 by San Francisco-based startup Luka Inc., offers users customized avatars capable of engaging in conversations. Marketed as a 'virtual friend' that can enhance users' emotional well-being, the platform has gained popularity but also raised concerns about data privacy and child safety 12.
Investigation Findings and Violations
The fine follows an investigation by Garante, which uncovered several breaches of data protection rules:
- Lack of Legal Basis: Replika was found to be processing users' data without a proper legal foundation 12.
- Absence of Age Verification: The platform had no system in place to verify users' ages, potentially exposing children to inappropriate content 12.
- Service Suspension: In February 2023, Garante had already ordered Replika to suspend its service in Italy, citing specific risks to children 12.
Broader Implications for AI Regulation
This case is part of a larger trend of increased regulatory scrutiny of AI platforms in Europe:
- Further Investigation: Garante has announced a separate investigation into whether Replika's generative AI system complies with EU privacy rules, particularly regarding the training of its language model 12.
- Proactive Regulation: The Italian watchdog is emerging as one of the EU's most proactive regulators in assessing AI platforms' compliance with data privacy rules 12.
- Previous Actions: Last year, Garante fined ChatGPT maker OpenAI €15 million after briefly banning the chatbot in Italy over alleged breaches of EU privacy rules 12.
Industry Response and Future Outlook
As of the report, Replika had not immediately responded to requests for comment on the fine and findings 12. This case underscores the challenges AI companies face in navigating the complex landscape of data protection regulations, especially when their services involve personal data and potential interaction with minors.
The action against Replika serves as a reminder to AI developers and companies of the importance of building robust data protection and age verification systems into their products from the outset. As AI technologies continue to advance and integrate into daily life, we can expect to see more regulatory actions and the potential development of more comprehensive AI-specific regulations across the EU and globally.
Summarized by
Navi
[2]
NASA and IBM Unveil Surya: An AI Model for Predicting Solar Weather
NASA and IBM have developed Surya, an open-source AI model that can predict solar flares and space weather, potentially improving the protection of Earth's critical infrastructure from solar storms.
5 Sources
Technology
2 hrs ago
5 Sources
Technology
2 hrs ago
Meta Launches AI-Powered Voice Translation for Facebook and Instagram Creators
Meta introduces an AI-driven voice translation feature for Facebook and Instagram creators, enabling automatic dubbing of content from English to Spanish and vice versa, with plans for future language expansions.
8 Sources
Technology
19 hrs ago
8 Sources
Technology
19 hrs ago
OpenAI's GPT-6: Revolutionizing AI with Memory and Personalization
OpenAI CEO Sam Altman reveals plans for GPT-6, focusing on memory capabilities to create more personalized and adaptive AI interactions. The upcoming model aims to remember user preferences and conversations, potentially transforming the relationship between humans and AI.
2 Sources
Technology
19 hrs ago
2 Sources
Technology
19 hrs ago
DeepSeek and Baidu: China's Open-Source AI Revolution Challenges Western Dominance
Chinese AI companies DeepSeek and Baidu are making waves in the global AI landscape with their open-source models, challenging the dominance of Western tech giants and potentially reshaping the AI industry.
2 Sources
Technology
3 hrs ago
2 Sources
Technology
3 hrs ago
The Rise of 'AI Psychosis': Mental Health Concerns Grow as AI Chatbots Proliferate
A comprehensive look at the emerging phenomenon of 'AI psychosis', its impact on mental health, and the growing concerns among experts and tech leaders about the psychological risks associated with AI chatbots.
3 Sources
Technology
3 hrs ago
3 Sources
Technology
3 hrs ago
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
