1 00:00:00,040 --> 00:00:03,760 This podcast is brought to you by CURRENT Redefine your Banking 2 00:00:03,760 --> 00:00:05,960 with Current The Future of personal Finance. 3 00:00:06,240 --> 00:00:08,600 Manage your money smarter, faster, and on the go. 4 00:00:08,600 --> 00:00:11,880 No hidden fees, instant transaction alerts, and savings 5 00:00:11,880 --> 00:00:15,120 goals you can actually achieve. I've been using Current for 6 00:00:15,120 --> 00:00:17,560 years and they're a great institution. 7 00:00:17,920 --> 00:00:22,040 If you'd like to get $50 by signing up to Current, please 8 00:00:22,040 --> 00:00:26,080 follow the link in the show notes Join Current Today and 9 00:00:26,080 --> 00:00:28,320 Experience Banking that Keeps up with you. 10 00:00:28,320 --> 00:00:30,800 Welcome back to the Elon Musk Podcast. 11 00:00:30,800 --> 00:00:33,880 This is a show where we discuss the critical crossroads that 12 00:00:33,880 --> 00:00:38,000 shape SpaceX, Tesla X, The Boring Company, and Neuralink. 13 00:00:38,080 --> 00:00:41,800 And I'm your host, Will. Walden Open AI faces a legal 14 00:00:41,800 --> 00:00:45,680 challenge in the European Union due to a complaint about Chat GP 15 00:00:45,680 --> 00:00:49,440 TS inaccurate responses, particularly when it generates 16 00:00:49,440 --> 00:00:53,960 false personal information. A European policy privacy rights 17 00:00:53,960 --> 00:00:57,960 group, NOYB, lodge the complaint with the Austrian Data 18 00:00:57,960 --> 00:01:01,960 Protection authority, asserting that Open AI's ChatGPT often 19 00:01:01,960 --> 00:01:06,000 provides incorrect data about individuals, which it then fails 20 00:01:06,000 --> 00:01:09,520 to correct or erase. This inability to adjust false 21 00:01:09,520 --> 00:01:13,760 information reportedly contravenes the General Data 22 00:01:13,760 --> 00:01:18,720 Protection Regulation, or GDPR, raising significant privacy and 23 00:01:18,720 --> 00:01:23,360 accuracy concerns when Noi's action centers on a specific 24 00:01:23,360 --> 00:01:26,560 incident involving a public figure who queried ChatGPT about 25 00:01:26,560 --> 00:01:30,480 his birthday, only to receive multiple incorrect answers, and 26 00:01:30,480 --> 00:01:34,000 despite requests Open AI allegedly could not rectify this 27 00:01:34,000 --> 00:01:36,320 misinformation. The complaint highlights a 28 00:01:36,320 --> 00:01:39,360 broader issue with the handling of personal data by artificial 29 00:01:39,360 --> 00:01:43,320 intelligence systems, including large language models, 30 00:01:43,320 --> 00:01:46,840 specifically the challenges in ensuring data accuracy and 31 00:01:46,840 --> 00:01:49,160 rectification as mandated by GDPR. 32 00:01:49,840 --> 00:01:53,160 Now, the GDPR enforces strict rules on the accuracy and 33 00:01:53,160 --> 00:01:56,760 management of personal data within the EU, including the 34 00:01:56,760 --> 00:01:59,440 right to have incorrect data corrected. 35 00:02:00,000 --> 00:02:04,000 Now, according to NOIB NOIB, open AI's failure to comply with 36 00:02:04,000 --> 00:02:06,640 these standards by not correcting false information 37 00:02:06,640 --> 00:02:09,080 when requested violates the regulation. 38 00:02:09,400 --> 00:02:12,520 This issue is not just a minor error, but a fundamental flaw 39 00:02:12,520 --> 00:02:15,640 and how Open AI's model manages and corrects data. 40 00:02:15,640 --> 00:02:19,920 It generates Open AI system ChatGPT generates responses 41 00:02:19,920 --> 00:02:23,480 based on patterns and information from vast, numerous 42 00:02:23,480 --> 00:02:25,600 data sets it has been trained on. 43 00:02:25,600 --> 00:02:29,520 However, the company admits it cannot always pinpoint the 44 00:02:29,520 --> 00:02:32,240 data's origins or verify its accuracy. 45 00:02:32,640 --> 00:02:35,960 This gap in data management becomes particularly problematic 46 00:02:36,080 --> 00:02:39,440 when the information is about individuals who, under GDPR, 47 00:02:39,640 --> 00:02:43,320 have the right to access their data and demand corrections to 48 00:02:43,520 --> 00:02:47,920 any inaccuracies. Now, the complaint filed by Noib 49 00:02:48,200 --> 00:02:51,240 is a critical test case for AI and privacy regulation. 50 00:02:51,760 --> 00:02:55,200 It questions how well companies like Open AI can align their 51 00:02:55,200 --> 00:02:58,240 operations with stringent EU data protection standards. 52 00:02:58,520 --> 00:03:02,040 And the GDPR not only requires the personal data be handled 53 00:03:02,040 --> 00:03:05,360 accurately, but also the individuals can review and 54 00:03:05,360 --> 00:03:07,800 correct any information if it is wrong. 55 00:03:08,880 --> 00:03:12,240 Now the Noib has asked the Austrian Data Protection 56 00:03:12,240 --> 00:03:14,880 Authority not only to investigate this complaint, but 57 00:03:14,880 --> 00:03:20,120 also to force GDPR compliance by potentially ordering Open AI to 58 00:03:20,120 --> 00:03:22,440 adjust its data management practices. 59 00:03:22,800 --> 00:03:25,600 This can include ensuring that all personal data used and 60 00:03:25,600 --> 00:03:29,800 generated by its AI systems is accurate or at least correctable 61 00:03:29,840 --> 00:03:31,920 when inaccuracies are identified. 62 00:03:32,520 --> 00:03:36,240 The inability to correct data is a significant challenge for AI 63 00:03:36,240 --> 00:03:39,240 developers. AI systems, articularly those 64 00:03:39,240 --> 00:03:42,800 using large language models like ChatGPT, often generate what is 65 00:03:42,800 --> 00:03:46,200 known as hallucinated information, lausible but 66 00:03:46,200 --> 00:03:49,400 incorrect or fabricated data, and while this may be 67 00:03:49,400 --> 00:03:52,120 occasionally acceptable in harmless contexts like 68 00:03:52,120 --> 00:03:55,560 generating creative content, it poses serious issues when the 69 00:03:55,560 --> 00:03:59,440 data involves personal details. The legal and ethical 70 00:03:59,440 --> 00:04:02,760 implications of AI generated misinformation are huge. 71 00:04:03,240 --> 00:04:06,640 If AI tools cannot reliably manage personal data in 72 00:04:06,640 --> 00:04:10,600 compliance with laws like GDR, it restricts their usage in 73 00:04:10,600 --> 00:04:12,840 applications involving personal information. 74 00:04:13,320 --> 00:04:16,800 The fundamental principle at stake is whether AI can adapt to 75 00:04:16,800 --> 00:04:20,360 legal standards or if legal frameworks need to evolve to 76 00:04:20,360 --> 00:04:23,480 accommodate the unique challenges posed by these new AI 77 00:04:23,480 --> 00:04:26,440 technologies. This case also shows that the 78 00:04:26,440 --> 00:04:29,240 broader dilemma of how AI is trained and functions. 79 00:04:29,720 --> 00:04:32,560 Since these models learn from vast pools of data sourced from 80 00:04:32,560 --> 00:04:36,280 the Internet, ensuring the accuracy of every piece of data 81 00:04:36,560 --> 00:04:40,920 becomes nearly impossible. Yet the legal expectations for 82 00:04:40,920 --> 00:04:44,640 data accuracy and management are clear under GDPR. 83 00:04:45,240 --> 00:04:47,960 The ongoing case reflects growing global concern over the 84 00:04:47,960 --> 00:04:50,680 governance of artificial intelligence and the rights of 85 00:04:50,680 --> 00:04:54,440 individuals in the digital age. As AI technologies become more 86 00:04:54,440 --> 00:04:57,000 integrated into everyday activities, ensuring they 87 00:04:57,000 --> 00:04:59,960 operate within legal and ethical boundaries is crucial. 88 00:05:00,440 --> 00:05:03,440 This includes not only respecting privacy rights, but 89 00:05:03,440 --> 00:05:07,160 also addressing the technical limitations of AI in managing 90 00:05:07,160 --> 00:05:11,040 personal data. Now, Open AI's response to these 91 00:05:11,040 --> 00:05:13,680 allegations and the outcome of this complaint could set 92 00:05:13,680 --> 00:05:15,760 important precedents for the AI industry. 93 00:05:16,120 --> 00:05:19,400 It might influence how AI developers approach data 94 00:05:19,800 --> 00:05:22,600 management articularly for applications involving ersonal 95 00:05:22,600 --> 00:05:26,160 information, and could spur changes in technology design to 96 00:05:26,160 --> 00:05:28,640 ensure compliance with data protection laws. 97 00:05:29,280 --> 00:05:32,320 The outcome of Noib's complaint is also important for regulatory 98 00:05:32,320 --> 00:05:34,880 bodies across Europe. It tests the effectiveness of 99 00:05:34,880 --> 00:05:39,000 GDPR enforcement mechanisms in the context of AI, and it could 100 00:05:39,000 --> 00:05:41,080 lead to more stringent regulatory measures. 101 00:05:41,280 --> 00:05:43,200 If current frameworks are found lacking. 102 00:05:43,680 --> 00:05:46,520 The broader implications for the AI sector are significant. 103 00:05:47,080 --> 00:05:50,280 If AI cannot meet legal standards for data privacy and 104 00:05:50,280 --> 00:05:53,440 accuracy, they could limit the technology's deployment in 105 00:05:53,440 --> 00:05:56,080 regions with strict data protection laws like the EU. 106 00:05:56,520 --> 00:05:59,520 This would not only affect comanies like Open AI, but also 107 00:05:59,520 --> 00:06:02,600 the broader adoption of AI technologies in critical areas. 108 00:06:03,080 --> 00:06:06,720 The potential penalties for a GDPR violations are quite 109 00:06:06,720 --> 00:06:09,400 severe. Companies can face up to 4% of 110 00:06:09,400 --> 00:06:13,880 their annual global turnover, A substantial financial risk. 111 00:06:14,360 --> 00:06:17,840 This underscores the high stakes for Open AI and similar firms 112 00:06:18,040 --> 00:06:20,640 ensuring their technology is comply with legal standards. 113 00:06:21,160 --> 00:06:24,320 As the case progresses, it will likely attract significant 114 00:06:24,320 --> 00:06:27,480 attention from privacy advocates, regulatory bodies in 115 00:06:27,480 --> 00:06:30,760 the AI community. The discussions and decisions 116 00:06:30,760 --> 00:06:34,040 from this case could influence future legal and ethical 117 00:06:34,040 --> 00:06:37,400 frameworks for AI, shaping how these technologies are developed 118 00:06:37,480 --> 00:06:39,880 and used globally. It also highlights a growing 119 00:06:39,880 --> 00:06:43,000 awareness and concern among the public and policy makers about 120 00:06:43,000 --> 00:06:45,840 the capabilities and limitations of AI and handling personal 121 00:06:45,840 --> 00:06:48,520 information. This increased scrutiny could 122 00:06:48,520 --> 00:06:51,600 push for more transparency and accountability in the AI sector, 123 00:06:51,920 --> 00:06:54,360 particularly in how data is used and manage. 124 00:06:54,360 --> 00:06:58,760 And the case between Neueb and Open AI in Austria is not just a 125 00:06:58,760 --> 00:07:02,200 single data error represents a critical junction in the 126 00:07:02,200 --> 00:07:05,440 intersection of technology, law and human rights. 127 00:07:05,920 --> 00:07:08,600 The decision by the Austrian Data Rotection Authority and 128 00:07:08,600 --> 00:07:12,240 otentially other EU bodies will be closely watched as a 129 00:07:12,240 --> 00:07:15,840 benchmark for AI's role in society and its compliance with 130 00:07:15,960 --> 00:07:19,960 established legal forms. Hey, thank you so much for 131 00:07:19,960 --> 00:07:22,160 listening today. I really do appreciate your 132 00:07:22,160 --> 00:07:23,680 support. If you could take a second and 133 00:07:23,680 --> 00:07:26,600 hit the subscribe or the follow button on whatever podcast 134 00:07:26,600 --> 00:07:29,320 platform that you're listening on right now, I greatly 135 00:07:29,320 --> 00:07:31,000 appreciate it. It helps out the show 136 00:07:31,000 --> 00:07:34,360 tremendously and you'll never miss an episode and each episode 137 00:07:34,360 --> 00:07:37,720 is about 10 minutes or less to get you caught up quickly. 138 00:07:37,720 --> 00:07:40,400 And please, if you want to support the show even more, go 139 00:07:40,400 --> 00:07:45,640 to patreon.com/stage Zero and please take care of yourselves 140 00:07:45,640 --> 00:07:47,400 and each other and I'll see you tomorrow.