Google’s PaLM2 AI Faces EU Crackdown for Alleged Data Privacy Violations

Google’s AI Model Faces EU Scrutiny Over Data Privacy Concerns

European regulators are turning their gaze towards Google's artificial intelligence systems, questioning their compliance with the European Union’s stringent data privacy laws.

On Thursday, Ireland’s Data Protection Commission (DPC) launched an inquiry into Google’s Pathways Language Model 2 (PaLM2), highlighting concerns that the model may be processing vast amounts of personal data without proper assessment of its impact on individual privacy rights within the European Union.

With Google’s European headquarters based in Dublin, the Irish watchdog is responsible for ensuring the tech giant’s adherence to the General Data Protection Regulation (GDPR), the cornerstone of the bloc’s privacy laws.

According to the DPC, the investigation focuses on whether Google conducted an adequate assessment to determine if PaLM2’s data processing activities could pose a “high risk to the rights and freedoms of individuals.”

This inquiry is part of a larger initiative across multiple EU nations, aiming to scrutinise the handling of personal data by AI systems.

Google, when approached for comment, chose not to respond.

The Rise of AI Models and Their Data Usage

Large language models, such as Google’s PaLM2, have become indispensable in the realm of artificial intelligence.

These models are built using enormous amounts of data, and they power services ranging from personalised recommendations to generative AI capabilities.

For instance, Google’s PaLM2 is already being utilised in services like email summarisation.

While these applications bring convenience, they also raise questions about how much personal data is involved in training such systems and whether users’ privacy is at risk in the process.

In response to these concerns, the DPC’s latest move reflects the increasing pressure on tech companies to comply with Europe’s rigid data protection laws, especially as AI’s role expands across multiple sectors.

The question remains whether companies like Google are adequately safeguarding user data while pushing the boundaries of AI-driven innovation.

Irish Regulators Continue to Hold Tech Giants Accountable

Ireland’s Data Protection Commission has repeatedly stepped up its regulatory oversight of U.S.-based tech companies operating within the EU.

The DPC has historically taken the lead in enforcing GDPR regulations, particularly with major players like Google and Meta, given that both companies house their European operations in Ireland.

The DPC's inquiry into Google follows a series of similar actions taken against other companies operating large-scale AI models.

For instance, Elon Musk’s social media platform X recently agreed to permanently halt its processing of user data for its AI chatbot Grok.

This decision came after the Irish watchdog took legal action, seeking to suspend X’s data processing practices.

The DPC’s High Court filing last month reflects its growing frustration with platforms that process personal data without proper safeguards.

Similarly, Meta Platforms Inc. faced pressure from the Irish regulators earlier this year, resulting in Meta pausing its plans to use European user content to train its own AI systems.

This move came after what was described as “intensive engagement” between the DPC and Meta in June.

Sponsored Business Content

EU’s Broader Push for AI Accountability

The inquiry into Google’s PaLM2 is just one part of the broader EU-wide push to regulate AI and protect citizens from potential privacy infringements.

As part of its wider efforts, the DPC is collaborating with regulators from the European Economic Area (EEA) to monitor how tech companies process personal data in developing AI models.

This push is not just isolated to Google.

OpenAI’s ChatGPT, one of the most popular AI chatbots, was temporarily banned in Italy last year due to data privacy breaches.

Italy’s data watchdog demanded that OpenAI address specific concerns before being allowed to resume operations within the country.

These incidents highlight the regulatory challenges facing companies developing AI models in Europe, where compliance with GDPR remains a top priority.

As AI systems grow more advanced, the risks to personal privacy increase, prompting greater scrutiny from EU regulators.

The investigation into Google’s PaLM2 could serve as a precedent for other AI models, signalling to the industry that compliance with data privacy laws must be integral to their operations.

Ireland’s DPC: Leading the Charge on Privacy in AI

Ireland’s role as the lead GDPR enforcer for many of the world’s tech giants gives the country significant influence in shaping how AI systems are regulated across the European Union.

In its statement, the DPC emphasised that this inquiry forms part of its ongoing efforts to regulate the use of personal data in AI development.

By taking proactive steps, the DPC aims to ensure that companies like Google, X, and Meta do not overstep their boundaries in their race to dominate the AI landscape.

At the core of the DPC’s concerns is the need for transparency.

Companies developing AI models must assess the potential risks to users’ privacy and ensure that they have proper safeguards in place before processing large datasets.

As noted by the DPC, the central issue is whether Google properly assessed the potential risks of PaLM2's data processing activities.

With the inquiry underway, the European Union’s data regulators will continue to hold tech companies accountable for the ways they collect and use personal data, ensuring that the rights of individuals are not sacrificed in the name of technological progress.

Is Restriction Really the Solution?

While restrictions like Italy’s temporary ban on ChatGPT and inquiries into AI models like Google’s PaLM2 aim to protect personal data, they may not be the ultimate solution.

Users often find ways around bans, such as turning to VPNs, which questions the effectiveness of outright prohibition.

Should regulators focus instead on transparency, strict safeguards, and user education rather than outright limitations?

As AI continues to grow, stifling innovation could have unintended consequences, but allowing unchecked data usage risks undermining individual rights.

The balance between innovation and privacy must be redefined — not simply through bans but with a new framework that evolves with technology.