Trento Municipality Fined for AI Misuse in Scientific Research Project, Becoming First Italian City to Face Such Penalty.
Trento has become the first municipality in Italy to incur a sanction for its improper utilization of artificial intelligence (AI), the Italian Data Protection Authority announced in a press release.
Trento conducted two scientific research projects that violated data protection laws using social networks, cameras, microphones, and artificial intelligence. With a fine of 50,000 euros ($54,373), the municipality became the initial local government to receive a reprimand from the Italian data authority.
The Italian privacy authority acknowledged the municipality’s good faith but determined that the collected data must be sufficiently anonymous and properly shared with third parties.
“The [Italian Data Protection Authority] condemned the massive and invasive processing methods put in place, which entailed significant risks for the rights and freedoms of the interested parties, including those of a constitutional nature.”
Reportedly, the municipality of Trento is contemplating an appeal of the decision, stating that the regulator’s actions “illustrate how the existing legislation is wholly inadequate to govern the utilization of artificial intelligence to enhance city security and analyze vast quantities of data.”
The Italian government has actively engaged in addressing the advancements in artificial intelligence. Italy was the first nation to prohibit OpenAI’s ChatGPT, a widely used AI chatbot, in March 2023, shortly after it went viral.
Although the prohibition was lifted after OpenAI adhered to transparency regulations in Italy, the country maintained a cautious stance towards the technology. The government established a multimillion-dollar fund in May 2023 to assist laborers at risk of being replaced by AI.
Following that, an Italian senator utilized OpenAI’s GPT-4 to generate a speech during a parliamentary debate to make a point about using artificial intelligence and ignite a “serious debate” in the country regarding technology.
To prevent the harvesting of AI-generated data, Italian regulators initiated an investigation into the security practices of private and public websites in November.
Recently, on January 5, Italy declared that one of its top priorities during its forthcoming June G7 presidency will be the regulation of artificial intelligence.
