Three weeks ago, a client called our office in panic. Their marketing team had been using ChatGPT for months to draft client proposals complete with customer names, project details, and budget information. Only when preparing for an investor due diligence did they realize they might have a serious GDPR problem on their hands.
They’re not alone. As artificial intelligence tools become workplace staples, Slovak businesses face a critical challenge: how to harness ChatGPT’s productivity benefits while staying on the right side of data protection law.
The Double-Edged Sword of Workplace AI
ChatGPT has revolutionized how we work. From drafting emails and analyzing market data to automating customer service responses, the efficiency gains are undeniable. Yet with each prompt we type, we potentially transmit data across borders, feed training algorithms, and create compliance obligations many businesses haven’t fully considered.
For Slovak companies operating under GDPR, the stakes are particularly high. With the EU AI Act’s obligations now taking effect and data protection authorities intensifying their scrutiny of AI implementations, ignorance is no longer a viable defense.
Understanding the Versions: Not All ChatGPT is Created Equal
One of the most critical distinctions Slovak businesses must understand is that different ChatGPT versions carry vastly different compliance implications.
The Free Versions (3.5 and 4): A Compliance Minefield
The widely-used free versions of ChatGPT present significant legal challenges that many companies overlook. Here’s the fundamental problem: OpenAI does not provide Data Processing Agreements for these versions, making compliant personal data processing essentially impossible.
According to Article 28 of GDPR, any entity processing personal data on behalf of a controller must sign a Data Processing Agreement. Without this foundational document, the legal basis for processing simply doesn’t exist. This means Slovak companies cannot legally use free ChatGPT versions for any tasks involving personal data. Whether that’s customer information, employee records, or even email addresses.
The situation becomes more complex when we consider OpenAI’s training practices. By default, prompts entered into free ChatGPT versions may be used to improve the model. While users can disable this feature in settings, the data still remains in OpenAI’s systems for up to 30 days before deletion. During this period, it continues contributing to model improvement.
Think about the implications: a recruiter pasting candidate CVs into ChatGPT for summaries, a sales team analyzing client communications, or an HR professional drafting performance reviews. Each action potentially constitutes unlawful data processing under Slovak and EU law.
Enterprise Solutions: Where Compliance Becomes Possible
ChatGPT’s API and Enterprise editions offer a fundamentally different compliance landscape. These paid versions include Data Processing Agreements, don’t use customer inputs for training purposes, and implement enhanced security measures including data encryption and SOC 2 certification.
For Slovak businesses serious about AI integration, these versions represent the compliant path forward. However, „possible“ doesn’t mean „automatic.“ Companies still bear responsibility for implementing proper safeguards, conducting risk assessments, and establishing clear usage policies.
The Third Country Transfer Challenge
Here’s where Slovak businesses face a uniquely European complication: OpenAI operates from California, making every ChatGPT interaction a third country data transfer under GDPR.
While OpenAI uses Standard Contractual Clauses and routes European contracts through OpenAI Ireland Ltd., this doesn’t eliminate transfer risks. The CLOUD Act and other US surveillance legislation create ongoing tensions with EU data protection principles and concerns that Slovak companies must evaluate when deciding whether ChatGPT use is appropriate for their specific data processing activities.
Recent developments have improved the situation somewhat. OpenAI now offers EU data residency options for enterprise customers, allowing data to be processed and stored entirely within the European Economic Area. This development significantly enhances compliance possibilities for Slovak organizations with strict data sovereignty requirements.
Practical Compliance Framework for Slovak Businesses
So what should Slovak companies actually do? Based on current regulatory guidance and best practices, here’s a structured approach:
1. Conduct a Usage Audit
Start by understanding how employees currently use ChatGPT. Anonymous surveys often reveal widespread usage that management never authorized. Document every business function where AI tools appear, what data gets processed, and which ChatGPT version employees use.
2. Implement a Clear AI Usage Policy
Your employees need explicit guidance on what’s permitted and what’s prohibited. A robust policy should address:
- Which AI tools are approved for business use
- What types of data can never be entered (customer information, employee records, trade secrets, financial data)
- Mandatory pseudonymization procedures for any edge cases
- Consequences for policy violations
- Regular training requirements
3. Choose the Right Tools
For tasks involving personal data, free ChatGPT versions are not an option. Period. Slovak businesses must either invest in enterprise solutions with proper Data Processing Agreements or find alternative approaches that don’t involve personal data processing.
4. Involve Your Data Protection Officer
Whether you have an internal DPO or use external data protection services, these specialists must review your AI implementation strategy. They’ll assess whether your chosen tools meet GDPR requirements, help draft necessary documentation, and identify risks specific to your business operations.
5. Document Everything
GDPR’s accountability principle requires that you can demonstrate compliance, not just achieve it. Maintain records of your AI risk assessments, Data Processing Agreements, employee training sessions, and policy acknowledgments. When regulators come asking and with increased AI scrutiny, they will, documentation makes the difference between a minor finding and a substantial fine.
The Employee Training Imperative
Technical safeguards and policies mean nothing if employees don’t understand or follow them. Regular training sessions should cover:
- Real examples of what constitutes personal data (it’s broader than most people think)
- Specific scenarios relevant to their roles
- The „why“ behind restrictions (people follow rules better when they understand the reasoning)
- How to recognize and report potential data breaches
- Alternative approved tools for different business needs
Consider making AI compliance training part of your onboarding process for all new employees. The investment in training time pays dividends in avoided compliance incidents.
Special Considerations for Slovak Businesses
While GDPR provides the EU-wide framework, Slovak businesses should also consider:
Language Processing: ChatGPT’s performance varies across languages. Slovak language inputs may not receive the same quality responses as English ones, potentially affecting business utility and increasing the temptation to translate sensitive information into English. Thereby multiplying data processing activities.
Cross-Border Operations: Many Slovak businesses work with partners in Austria, Czech Republic, and other neighboring countries. Ensure your AI compliance framework accounts for these cross-border data flows and that your partners maintain compatible standards.
Industry-Specific Regulations: Financial services, healthcare, and other regulated sectors face additional constraints beyond GDPR. The Slovak National Bank and sector-specific regulators may have particular requirements for AI usage that your compliance framework must address.
Looking Ahead: The EU AI Act Dimension
While this article focuses on GDPR compliance, Slovak businesses should be aware that the EU AI Act adds another regulatory layer. ChatGPT implementations that involve automated decision-making about individuals such as recruitment screening or credit assessments may trigger high-risk AI system obligations including rigorous testing, documentation, and human oversight requirements.
The good news? A solid GDPR compliance foundation addresses many AI Act requirements. Companies that properly handle data protection, conduct thorough risk assessments, and maintain transparent AI governance are already well-positioned for broader AI regulation.
The Bottom Line
ChatGPT and similar AI tools aren’t going away—they’re becoming standard business infrastructure. Slovak companies that take a „head in the sand“ approach risk not only regulatory penalties but also competitive disadvantage against rivals who integrate AI compliantly and effectively.
The question isn’t whether to use ChatGPT in your Slovak business. It’s how to do so legally, safely, and strategically.
Start by auditing current usage, implement clear policies, choose compliant tools, and involve data protection expertise from the beginning. The compliance investment you make today prevents the crisis calls we receive tomorrow.
At NextGen Legal, we help Slovak businesses navigate the intersection of technology and law. If you’re implementing AI tools and want to ensure compliance, or if you’re concerned about existing AI usage in your organization, we’re here to provide practical, strategic guidance that protects your business while enabling innovation.
Contact us for a confidential consultation about your AI compliance strategy.
Sources
- activeMind.legal (2024). „How to use ChatGPT in compliance with the GDPR.“ Available at: https://www.activemind.legal/guides/chatgpt/
- Pivotal Edge AI (2025). „GDPR Compliance Showdown: A Side-by-Side Comparison of Microsoft Copilot, ChatGPT, Claude & Gemini.“ Available at: https://pivotaledge.ai/blog/ai-assistant-gdpr-compliance-showdown
- European Commission (2025). „AI Act – Shaping Europe’s digital future.“ Available at: https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai
- Eversheds Sutherland (2025). „EU AI Act considerations for global employers.“ Available at: https://www.eversheds-sutherland.com/en/slovakia/insights/eu-ai-act-considerations-for-global-employers
- OpenAI (2025). „Enterprise privacy at OpenAI.“ Available at: https://openai.com/enterprise-privacy/
