Italy will temporarily ban the use of ChatGPT over concerns that the interactive AI-powered technology might be violating domestic laws.

The country's data protection authority made the announcement in a statement released on Friday.

It said it had received reports of a data breach on March 20 involving the conversations and payment information of ChatGPT users.

An investigation by the authority found that OpenAI, the US start-up that developed ChatGPT, failed to properly inform users about what data it is collecting or ensure that those accessing ChatGPT are above a certain age.

It says the developer apparently collects a vast array of data to train artificial intelligence, with no legal basis, which it says may be in violation of Italian laws on personal data protection.

The Italian authority says OpenAI has 20 days to respond with remedies or could risk a fine of up to 20 million euros, roughly 21.7 million dollars, or 4 percent of its annual worldwide turnover.

OpenAI CEO Sam Altman tweeted, "We defer to the Italian government and have ceased offering ChatGPT in Italy although we think we are following all privacy laws."

Reuters says Italy is the first Western country to take action against ChatGPT.