Italy's Data Protection Agency said on Friday it was prohibiting artificial intelligence (AI) chatbot company Replika from using the personal data of Italian users, citing risks to minors and emotionally fragile people.
"These tools are being used with children without much oversight or protection from potential misuse," she said.
Italian regulators highlighted the absence of an age-verification mechanism, such as filters for minors or a blocking device if users do not explicitly state their age. Replika breaches European Privacy Regulations and processes personal data unlawfully as it cannot be based, even implicitly, on a contract that a minor is unable to sign, the watchdog said.Robert Grosvenor, a managing director at consultancy firm Alvarez & Marsal, said the Italian watchdog was unlikely to be the only European regulator considering action against companies like Replika.
"Whilst age verification could provide means to protect some of the most vulnerable groups, it does not address the risks and harms that AI-based services and solutions can raise if unregulated, in terms of the potential for unintended bias and discrimination," he said. Replika's developer, U.S. company Luka Inc, must notify the Italian authority of measures taken to implement its requirements in 20 days and could be fined up to 20 million euros , or up to 4% of its global annual turnover, the statement said.Reporting by Elvira Pollina; Writing by Gianluca Semeraro; editing by Gavin Jones, Arun Koyyur and Bill Berkrot
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