EU Considers Toughening up on ChatGPT

Why It Matters

Designating ChatGPT as a large online search engine would bring the first AI‑driven service under the EU’s toughest digital rules, reshaping compliance expectations for generative‑AI providers worldwide.

Key Takeaways

• EU may label ChatGPT as large online search engine under DSA.
• OpenAI reports 120.4 M monthly active EU users, exceeding 45 M threshold.
• Designation would require risk assessments, audits, transparency, and moderation.
• Sets precedent for regulating large-language models across Europe.
• EC says decision will be case‑by‑case, impacting AI compliance.

Pulse Analysis

The European Union’s Digital Services Act has become the benchmark for regulating large digital platforms, and its scope now appears to be expanding to include generative‑AI services. By setting a clear user‑base threshold—45 million monthly active users—the EC signals that scale, not just function, determines regulatory reach. This approach mirrors earlier moves to treat social media giants as “very large online platforms,” compelling them to adopt robust risk‑management frameworks and transparency obligations.

OpenAI’s recent disclosure of 120.4 million average monthly active recipients in the EU underscores the rapid adoption of conversational AI. Crossing the DSA’s threshold puts ChatGPT in a new compliance tier that could require independent risk assessments, algorithmic audits, and mandatory data sharing with regulators. These requirements aim to mitigate misinformation, bias, and harmful content while ensuring that users have clearer insight into how the model operates. For OpenAI, meeting these standards may involve significant operational adjustments and legal costs, but it also offers an opportunity to demonstrate responsible AI stewardship.

The potential designation carries broader industry implications. If ChatGPT is classified as a large online search engine, other AI providers with sizable user bases—such as Anthropic, Google’s Gemini, or Microsoft’s Copilot—may face similar scrutiny. This could accelerate the development of industry‑wide best practices for AI safety, transparency, and governance. Moreover, firms that proactively align with DSA expectations may gain a competitive edge in the European market, where regulatory compliance increasingly influences consumer trust and market access.