The Banking Executive Magazine - April 2023 Issue

ated by United States start-up Ope- nAI and is backed by Microsoft. The regulator said it would ban and in- vestigate OpenAI. There have been concerns over the potential risks of artificial intelligence (AI), including its threat to jobs and the spreading of misinformation and bias. The Italian watchdog said that not only would it block OpenAI's chat- bot but it would also investigate whether it complied with General Data Protection Regulation. The watchdog stated that the app had experienced a data breach in- volving user conversations and pay- ment information, and that there was no legal basis to justify the mass col- lection and storage of personal data for the purpose of training the algo- rithms underlying the operation of the platform. Since there was no way to verify the age of users, the app ex- poses minors to absolutely unsuit- able answers compared to their degree of development and aware- ness. The ban shows the importance of regulatory compliance for compa- nies operating in Europe. Businesses must prioritise the protection of per- sonal data and comply with the strin- gent data protection regulations set by the European Union (EU). CHATGPT REGULATION ChatGPT regulation is necessary. Italy ban of ChatGPT has highlighted an absence of any concrete regula- tions, with the European Union and China among the few jurisdictions developing tailored rules for this pur- pose. Various governments are exploring how to regulate ChatGPT, and some are thinking of how to deal with gen- eral purpose systems such as Chat- GPT. Some countries are even con- sidering joining Italy in banning the technology. Below is an overview of ChatGPT regulation in various countries. In United Kingdom The United Kingdom (UK) an- nounced plans for regulating Artifi- cial Intelligence (AI). Rather than establish new regulations, the gov- ernment asked regulators in different sectors to apply existing regulations to AI. The UK proposals, that do not men- tion ChatGPT by name, outline some key principles for companies to fol- low when using AI in their products, including safety, transparency, fair- ness, accountability, and contestabil- ity. UK is not intending to put restrictions on ChatGPT, or any kind of AI. Instead, it wants to ensure ISSUE 172 APRIL 2023 the BANKING EXECUTIVE 11