ChatGPT in Business: Where Is the GDPR Problem?
ChatGPT has revolutionized the workplace. According to current surveys, over a third of German companies already use AI tools in their daily work – with a strong upward trend (source: Bitkom, 2025). But what many decision-makers overlook: Using ChatGPT in its standard configuration poses significant data protection risks for European businesses. Anyone looking for a secure ChatGPT alternative that is GDPR-compliant needs to understand the risks first.
The problem isn't the AI technology itself – it's where and how the data is processed. OpenAI is a US company. Your inputs are processed on servers in the United States. And this is exactly where the conflict with the European General Data Protection Regulation (GDPR) begins.
In this guide, you'll learn about the specific risks, the consequences of violations, and how to use the right ChatGPT alternative to leverage AI legally and GDPR-compliant in your business.
Important Notice
This article is for informational purposes and does not constitute legal advice. For specific data protection questions, consult your data protection officer or a law firm specializing in data protection law.
The GDPR issues with ChatGPT can be broken down into three core risk areas that every business needs to understand:
1. The US CLOUD Act: Your Data Accessible to US Authorities
The Clarifying Lawful Overseas Use of Data Act (CLOUD Act) of 2018 is the central problem. This US law requires American companies – including OpenAI – to hand over data at the request of US authorities. Regardless of where the data is physically stored.
This means: Even if OpenAI were to store data on European servers, US authorities (FBI, NSA, CIA) could demand access under the CLOUD Act. OpenAI would be legally obligated to hand over that data – without you as a European company being informed or consenting.
For companies handling confidential data, this is a fundamental compliance issue. An employee entering customer data into ChatGPT could unintentionally trigger a data protection violation.
CLOUD Act in Numbers
2018
Enacted
100%
US companies affected
0
Notification required
2. Your Inputs as Training Data: Who Is Reading Along?
By default, OpenAI uses your inputs to further develop ChatGPT. This means: What you enter into ChatGPT today could become part of the training model tomorrow – and potentially appear in responses to other users.
While OpenAI now offers the option to disable training on your data (via settings or API with the Enterprise version), even then critical questions remain:
- How long are your inputs stored on OpenAI servers?
- Who within OpenAI has access to the data – for quality control or moderation?
- Is data shared with subcontractors or cloud providers?
- Can you verifiably demand complete deletion of your data?
For GDPR Art. 5 – particularly the principles of purpose limitation and data minimization – this is problematic. You enter data for a specific purpose (e.g., text analysis), which is then used for another purpose (AI training). This contradicts the principle of purpose limitation.
3. Third-Country Transfer: The Schrems Legacy
Since the Schrems II ruling by the European Court of Justice (2020), data transfers to the US have been legally complicated. While the EU-US Data Privacy Framework (DPF) has provided a new legal basis since 2023, it stands on shaky legal and political ground. Data protection experts like Max Schrems have already announced plans to legally challenge the DPF.
For businesses, this means: Relying on the DPF as a legal basis today risks that basis being invalidated tomorrow – as has already happened twice (Safe Harbor 2015, Privacy Shield 2020). Each time, companies had to urgently restructure their entire data processing.
The safest solution: Don't transfer data to the US in the first place. A ChatGPT alternative with EU hosting completely eliminates the third-country transfer risk.
Consequences: What Businesses Face for GDPR Violations
The risks of a GDPR violation through uncontrolled use of ChatGPT are not theoretical scenarios – they are real, documented cases:
| Case | Fine | Reason |
|---|---|---|
| OpenAI / Italien (2024) | 15 Mio. € | Missing legal basis, lack of transparency in data processing |
| Meta / Irland (2023) | 1,2 Mrd. € | Unlawful data transfer to the US (third-country transfer) |
| H&M / Hamburg (2020) | 35,3 Mio. € | Unauthorized processing of personal employee data |
Maximum GDPR fines can reach up to €20 million or 4% of global annual revenue – whichever is higher. Additionally:
- Reputation damage: Data protection violations become public and can sustainably damage the trust of customers and business partners
- Compensation claims: Affected persons can claim damages under Art. 82 GDPR – including for non-material damages
- Cease-and-desist orders: Competitors can issue warnings for GDPR violations under competition law
- Internal consequences: Responsible managing directors can be held personally liable
The EU AI Act: New Requirements from 2025
As if the GDPR issues weren't complex enough, the EU AI Act (Artificial Intelligence Regulation) has been in effect since 2025 – the world's first comprehensive AI law. It places additional requirements on companies using AI systems:
- Risk classification: AI systems are categorized by risk. Using AI in HR (e.g., applicant screening) or credit decisions is considered "high-risk" and subject to special regulations
- Transparency obligations: Users must be informed when interacting with an AI system. AI-generated content must be identifiable as such
- Documentation requirements: Companies must document which AI systems they use, how they work, and what risks exist
- Human oversight: For high-risk applications, human review of AI results must be ensured
Fines under the EU AI Act are even higher than under GDPR: Up to €35 million or 7% of global annual revenue. For businesses, this means: AI usage is increasingly regulated – and those who early adopt a GDPR-compliant ChatGPT alternative are better positioned for the future.
GDPR Checklist: Using AI Safely in Business
If you want to use AI in your business – whether ChatGPT or a ChatGPT alternative – you should work through this 10-point checklist:
Check Hosting Location
Where is data processed? Prefer EU hosting to eliminate third-country transfer risks.
Sign Data Processing Agreement (DPA)
A DPA with the AI provider is mandatory under Art. 28 GDPR.
Conduct Data Protection Impact Assessment (DPIA)
A DPIA is required under Art. 35 GDPR for AI use in business.
Disable AI Training with Your Data
Ensure your inputs are not used to train the AI model.
Train Employees
Define clear guidelines: What data may be entered, what may not?
Update Processing Records
AI usage must be documented in your records of processing activities.
Ensure Data Deletion After Processing
Inputs should be deleted after processing and not stored long-term.
Evaluate CLOUD Act Risk
For US providers: Document the residual risk from the CLOUD Act and inform affected parties.
Implement Technical Safeguards
Set up encryption, access controls, and audit logs for AI usage.
Plan Regular Reviews
Review and update AI policies and compliance measures at least annually.
The simplest way to meet most of these requirements: Use a GDPR-compliant AI solution with EU hosting from the start. This eliminates third-country transfers, CLOUD Act, and AI training as risk factors.
The Solution: Lurus as a GDPR-Compliant ChatGPT Alternative
Lurus
From €12/monthGDPR-compliant ChatGPT alternative – Made in Germany, hosted in Europe. All GDPR requirements met out of the box.
Lurus was built as a GDPR-compliant ChatGPT alternative that eliminates all the above risks from the ground up. Instead of patching existing US infrastructure, the platform was designed from the start for the European market.
What Lurus Does Differently
Compared to ChatGPT, Lurus addresses the GDPR issues not through workarounds, but through architectural decisions:
| Criteria | ChatGPT | Lurus |
|---|---|---|
| Hosting | USA | EU (Germany) |
| CLOUD Act | Affected | Not affected |
| AI Training with Your Data | Default: Yes | No, never |
| DPA Available | Yes (DPA) | Yes |
| Data Deletion After Processing | Unclear / limited | Yes, guaranteed |
| Third-Country Transfer | Yes (USA) | No |
| Local Storage | Not available | Yes (IndexedDB) |
| Encryption | TLS 1.3 + AES-256 | TLS 1.3 + AES-256 |
| Price (Single User) | $20/month | From €12/month |
EU Hosting: The Decisive Difference
Lurus hosts all data exclusively in European data centers with ISO 27001 certification. This completely eliminates third-country transfer risk. As a German company, Lurus is not subject to the US CLOUD Act – access by US authorities is technically and legally excluded. Learn more on the security page.
No AI Training – Contractually Guaranteed
Your inputs are never used to train AI models. After processing, data is not stored on servers. Additionally, Lurus offers unique local storage: Chat histories remain exclusively on your device upon request – 0 bytes stored on Lurus servers.
15+ AI Models, Full Performance, Half the Price
Compared to ChatGPT ($20/month with access to the GPT model family), Lurus offers access to over 15 AI models – including Llama 3, GPT OSS, Qwen, Mistral and more – starting from just €12/month. Plus over 100 tool integrations for Google Workspace, Microsoft 365, Jira, Confluence, WhatsApp and Telegram. A team of 20 pays €69/month with Lurus – ChatGPT would cost $500/month.
Want to compare all alternatives in detail? Read our comprehensive comparison: The 8 Best ChatGPT Alternatives 2026 Compared
Conclusion: GDPR Compliance Is Not a Nice-to-Have
Using ChatGPT in business is possible in 2026 – but not without risks. The US CLOUD Act, third-country transfer issues, and the use of data for AI training present real compliance challenges for European businesses.
The good news: There are GDPR-compliant ChatGPT alternatives that offer the same or even greater functionality – without the data protection risks. Lurus demonstrates that performance and data protection need not conflict.
Our recommendation: Don't wait for the next GDPR scandal. Check today whether your current AI usage meets the requirements of GDPR and the EU AI Act – and switch to a solution that treats data protection not as an obstacle, but as a core principle.