Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
Written by Finbarr Toesland Thu 22 May 2025
San Francisco-based AI start-up Luka Inc., developer of chatbot Replika, has been fined £4.1 million (€5 million) by the Italian data watchdog, Garante, after breaching rules created to protect the personal data of users.
The AI chatbot service gives users the ability to make a ‘virtual companion’ who can be interacted with over text or voice to offer support as a therapist, mentor, romantic partner and other roles.
Back in early 2023, Garante demanded that Replika stop offering its services in Italy, warning that potential issues around both data protection and child safety had been identified. After an investigation by the data watchdog, Luka Inc. was found to have no legal basis for the processing of user data and lacked a system to verify user age, resulting in children being able to access the chatbot.
A major selling point for many users was the ability to talk to a virtual friend or partner, with the paid service enabling voice calls, custom avatars and augmented reality. Another investigation is ongoing by Garante into Replika to ascertain if the generative AI system used by the chatbot maker is fully in compliance with European Union privacy laws and guidelines.
“In particular, [Garante] requested details on risk assessments and the measures adopted to protect data during the development and training of the language model behind Replika, the categories and types of personal data processed, and whether anonymisation or pseudonymisation measures have been implemented,” reads the press release published by Garante.
This is not the first time Garante has levied a fine on a chatbot maker, with the data watchdog banning OpenAI’s ChatGPT and fining the parent company £12.6 million (€15 million) after alleging the business breached European Union privacy laws. Replika uses OpenAI’s GPT language models, which are also used by the ChatGPT chatbot service.
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Written by Finbarr Toesland Thu 22 May 2025
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