GDPR Compliant AI Chat: Requirements, Architecture & Setup 2026

Italy banned ChatGPT in 2023 over GDPR violations including lack of transparency, missing legal basis for data processing, and no age verification. Most AI chatbots fail GDPR compliance due to cross-border data transfers without safeguards, training on user data without consent, and lacking transparency or audit trails. The guide outlines specific GDPR requirements for AI chat systems, explaining why cloud APIs create compliance gaps and how to build audit-ready chatbots.