Companies utilising generative AI technology have been informed by the Information Commissioner’s Office (ICO) that they remain bound by data protection laws in the UK.

Consequently, they are required to obtain consent or provide evidence of a legitimate interest when collecting personal information.

The ICO warned it will issue notices demanding explanations of companies’ data practices, enforce orders to cease certain actions, and impose fines up to £17 million under the existing data protection laws. 

Speaking with the Telegraph, John Edwards, a spokesman for the ICO, said: “We will act where organisations are not following the law and considering the impact on individuals.”

This development is in line with the recommendations set out by the G7 meeting in Japan on 20 May.  The release for the summit detailed that G7 countries should counter unjustified obstacles to the free flow of data, lacking transparency, and arbitrarily operated, in the context of avoiding internet fragmentation. The G7 is also taking strides to oppose technologies’ infringement on human rights in the unethical use of data.

To address both of these issues facing the sharing and protection of data, the G7 is looking to strike a balance between the open regulated sharing of data between different countries, and protecting the rights and interests of the individuals in not having their data misused by large tech companies. 

“We seek to increase trust across our digital ecosystem and to counter the influence of authoritarian approaches,” continued the release.

The rapid growth of generative AI, spearheaded by companies like OpenAI with their ChatGPT model, has alarmed regulators due to its potential privacy implications.

Regulators worry not only about the ethics of data obtained from individuals interacting with the AI, but the mass amounts of data scraped from the internet, potentially containing personal information. 

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The Competition and Markets Authority (CMA) has already initiated an investigation into the AI market, including an examination of the safety implications arising from the technology.

Ofcom has also recommended stricter rules for the responsible use of AI, such as increased risk assessment on new applications.

These concerns took centre stage in March when Italy’s data protection authority temporarily blocked ChatGPT due to the absence of a legal basis justifying the extensive collection and storage of personal data.

In response, OpenAI extended its privacy policy, introduced the option for European users to opt out of data processing through an online form, and established a right to erase inaccurate information.