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Generative AI tools like ChatGPT are capable of quickly generating human-sounding text for various purposes.

However, the surging popularity of these tools has led to concerns about the implications of their development and use. Some of these potential issues include:

Being aware of these issues can help you use ChatGPT safely and responsibly.

ChatGPT legal issue 1: Data privacy

The widespread use of ChatGPT raises concerns about data privacy and regulation.

ChatGPT conversations

OpenAI (the developer of ChatGPT) generally stores ChatGPT conversations as training material for future models. This could potentially lead to legal issues if users input confidential or sensitive information that is later reproduced by the tool.

For example, if an employer were to use ChatGPT to draft employee contracts, it’s possible that personal data such as employees’ names, addresses, and income information could be saved as future training material.

To prevent conversations being used in this way, users can manually disable chat history. They can also request that OpenAI delete the content of their past conversations.

Data regulation

Users should familiarize themselves with relevant laws pertaining to the use of their data.

Two important privacy regulations that OpenAI claims to adhere to are:

CCPA (California Consumer Privacy Act), which protects the privacy rights of Californian citizens

GDPR (General Data Protection Regulation), which protects the privacy and data rights of EU citizens

Moreover, the undeclared use of these tools by businesses can have legal implications. For example, the California Bot Disclosure Law dictates that businesses using generative AI tools in consumer interactions (e.g., in customer support communications) must clearly indicate this to consumers.

ChatGPT legal issue 2: Copyright infringement

ChatGPT’s training process and outputs may raise copyright issues.

Training data

ChatGPT is trained on vast quantities of internet sources. The usage of some of these sources may infringe on the intellectual property rights of third parties.

EU regulators are currently developing legislation to ensure transparency about the sources used in training AI algorithms.

However, it’s unclear how such problems will ultimately be resolved. In the US, the Federal Trade Commission (FTC) has previously used a measure called “algorithmic disgorgement.” This requires companies to delete algorithms that were trained on improperly sourced data.

Ownership of outputs

It’s somewhat unclear who actually owns the copyright of ChatGPT outputs.

According to OpenAI’s terms of use, users have the right to reproduce ChatGPT outputs for any purpose, including publication (as long as the publisher allows the use of AI writing, of course).

However, ChatGPT outputs are not always unique. This could lead to potential legal issues if the same output is used commercially by different users. OpenAI’s policy doesn’t really clarify this issue. It states: “Other users may also ask similar questions and receive the same response. Responses that are requested by and generated for other users are not considered your Content.”

OpenAI also claims that users are legally responsible for the content of such outputs, meaning users may be liable if they reproduce an output that contains copyrighted material. However, it’s not clear how users can know whether this is the case, as the tool is unable to provide accurate citations.

Users should be aware of such issues and use AI-generated outputs as a source of inspiration instead of reproducing them verbatim.

ChatGPT legal issue 3: Reproducing biases/inaccurate information

ChatGPT is trained on large datasets which may include hidden biases or limitations.

The tool itself does not have the ability to understand the implications of its outputs. In spite of OpenAI’s efforts to eliminate these problems, ChatGPT is not always trustworthy and still occasionally generates responses that contain discriminatory or inaccurate information.

For example, in April 2023, an Australian mayor began a defamation lawsuit against OpenAI for ChatGPT’s inaccurate claim that he was arrested and charged with bribery in 2012.

Users who publish inaccurate information generated by ChatGPT could potentially suffer reputational damage or, in extreme cases, even charges of libel.

It’s important to verify the accuracy of AI-generated responses against a credible source and to critically consider the risk of bias on any topic.

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Frequently asked questions about ChatGPT Cite this Scribbr article

Ryan, E. (2023, July 06). What Are the Legal Implications of ChatGPT?. Scribbr. Retrieved July 19, 2023,

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