Italian city first to receive fine for AI privacy violations

The penalty came with the stipulation that Trento erase information harvested in two projects that were financially backed by the European Union, and stands as the first time that a local administration has been hit by the GDPD authority over the use of data from AI technologies.

Following an exhaustive examination of Trento’s projects, the GPDP identified “multiple violations of privacy regulations” but the watchdog acknowledged the municipality had operated with good intentions. It was also noted that Trento did not go far enough with data anonymisation and that the data was incorrectly disclosed to third parties.

Trento has said that it will appeal the action taken against it, stating: “The decision by the regulator highlights how the current legislation is totally insufficient to regulate the use of AI to analyse large amounts of data and improve city security”. 

The case comes during Italy’s G7 presidency, and the Italian prime minister, Giorgia Meloni is under pressure to manage transitions to AI carefully, especially when it comes to protecting data subjects’ rights and safeguarding privacy.

At the end of last year, EU authorities reached provisional terms for regulating AI platforms, inching nearer to establishing comprehensive rules for evolving technologies. A significant point of contention revolved around the deployment of AI in biometric surveillance.

Know the risks

The Italian regulator’s decision to impose this fine on Trento underscores the task that lawmakers face and organisations face concerning the safe use of AI for extensive data analysis.

The topic falls under scrutiny next month at #RISK Digital, where experts will debate the risks and opportunities that come with AI integration into business operations.