DocumentedData Privacy & Regulatory ViolationMarch 2023South Korea

Samsung Employees Leak Confidential Data to ChatGPT

Within ~20 days of Samsung allowing engineers to use ChatGPT, three separate confidential data leaks occurred: proprietary semiconductor source code, defect-detection algorithms, and internal meeting recordings, all uploaded to ChatGPT consumer tier which retains inputs for training by default.

AI system:ChatGPT (consumer tier, OpenAI)

Impact

Confidential semiconductor source code unrecoverable. Samsung imposed 1024-byte prompt limit then full ban May 2023. Cyberhaven research found 3.1% of enterprise workers pasted confidential data into ChatGPT. Became the canonical AI data exfiltration case.

Outcome

Samsung began building internal LLM. JPMorgan, Verizon, Amazon, Walmart, Apple imposed restrictions. Italy's Garante cited retention concerns in March 2023 temporary ChatGPT ban.

Sources

  1. Source 1Cybersecurity Dive / Economist Koreawww.cybersecuritydive.com/news/Samsung-Electronics-ChatGPT-leak-data-privacy/647219/
  2. Source 2Gizmodogizmodo.com/chatgpt-ai-samsung-employees-leak-data-1850307376
  3. Source 3Dark Readingwww.darkreading.com/vulnerabilities-threats/samsung-engineers-sensitive-data-chatgpt-warnings-ai-use-workplace

Related incidents

Same category, country, or harm tier.

United States·May 5, 2026
Pennsylvania Sues Character.AI Over Chatbots Posing as Licensed Doctors
Pennsylvania Governor Josh Shapiro's administration sued Character.AI, alleging unlawful practice of medicine. A state investigator posing as a patient interacted with a persona named 'Emilie' that claimed to be a psychiatrist, said it attended Imperial College London, claimed to be licensed in Pennsylvania, and supplied a license number the state confirmed was invalid.
Italy·2023-02-02 (ban); 2025-05-19 (fine)
Italy Replika Chatbot Ban and 5M Euro Fine
Italy's Garante issued an urgent order halting Replika from processing Italian user data February 2023. Found: no effective age verification (only name, email, gender); no valid legal basis for processing; sexually suggestive content served to minors; English-only privacy policies citing US COPPA instead of GDPR; significant risks to emotionally vulnerable adults, some of whom reported mental-health crises when erotic roleplay was later restricted.
Multi-country·2021 to 2025 (ongoing)
Clearview AI Cascading EU Regulatory Fines
Clearview AI scraped 10+ billion facial images from social media and public sources to build a facial recognition database sold to law enforcement and private clients. Coordinated complaints filed May 2021 by Privacy International, noyb, Homo Digitalis, and Hermes Center in 5 EU countries. Clearview refused to comply with GDPR Article 27 (EU representative requirement) and ignored legal notices.