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News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | OpenAI Faces Investigation Request by Austrian Authority Over Alleged Privacy Breaches

OpenAI is facing scrutiny in the European Union over ChatGPT’s hallucinations about people. A privacy rights nonprofit group called noyb has filed a complaint against OpenAI for its inability to correct information generated by ChatGPT about individuals, which violates the General Data Protection Regulation (GDPR). OpenAI is accused of being unable to correct incorrect information, not disclosing the source of data or what data ChatGPT stores about individuals, and refusing to rectify or erase data. The complaint asks the Austrian Data Protection Authority to investigate OpenAI’s data processing and order compliance with the complainant’s request to access the data.

Enkrypt AI has raised concerns about the safety and vulnerabilities of top LLMs (Language Model Models). Their LLM safety leaderboard benchmarks the safety and security of AI technology from notable LLMs, highlighting issues with fine-tuning and quantization practices. Enkrypt AI aims to promote the adoption of generative AI that is safe and responsible, enabling enterprises to make informed decisions and uphold ethical and regulatory standards.

Enterprises plan to spend an average of $35.5 million on IT modernization, with over one-third of the budget allocated to AI. By the end of this year, businesses will have invested an average of $21 million in AI, with $6.7 million specifically for generative AI. However, data management challenges and tech debt are hindering progress, with over half of IT decision-makers expressing concerns.

According to a survey by Gartner, while the use of artificial intelligence (AI) is increasing in organizations, only 9% of the polled organizations have mature AI processes in place. The survey also found that organizations need to develop foundational AI capabilities and prioritize data to generate good business outcomes with AI. Utilizing generative AI embedded in existing applications is the top method for fulfilling generative AI use cases.

Why do we care?

If you ever wonder where the regulations come from, guess the EU.    I’m fascinated that an ecosystem of vendors is already appearing to advise on other tools in the AI space.   In my analogy of AI models as wines and service providers as sommeliers, there are now wine rankings for sommeliers to leverage.   

And we care because of the two other studies – money is flowing to AI, there’s a need for data management, and most organizations… that other 91 percent –need help.    

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