ChatGPT maker OpenAI has said it is now offering data residency services to its business customers in the UAE, boosting compliancy and user protection amid the rapid adoption of artificial intelligence.
The option, which will allow companies to store their data in the Emirates, is available for ChatGPT's paid enterprise, education and API (application programming interface) tiers, the California-based tech major said on Tuesday.
The data residency service is already live in the Emirates and will be free of charge, an OpenAI representative told The National.
Data residency is a system in which data is stored and processed within geographical borders of a country or region, which can be a requirement for local data laws. It is a key component of data sovereignty, giving countries legal control over the data within their jurisdictions.
OpenAI, credited with pioneering the generative AI race, said companies across the UAE are adopting AI “at a remarkable pace” underpinned by the federal government's drive to promote data protection, its head of enterprise for the Middle East and North Africa, Farouk El Hamzawi, said in a statement.
“This step gives UAE institutions greater choice and confidence as they build with AI, and we look forward to continuing to partner across the public and private sectors to help realise this vision,” Mr El Hamzawi said.
Data protection has become increasingly important in the digital age, with personal and sensitive information being widely shared and available for many purposes. However, the increase of information sharing also raises the risk of misuse.
UAE laws do not explicitly require company data to be stored within the country. However, Federal Decree Law No 45 of 2021, regarding the protection of personal data, defines the controls for the processing of personal data and the general obligations of companies that have personal data to secure it and maintain its confidentiality and privacy.
It also prohibits the processing of personal data without the consent of its owner, except for some cases in which the processing is necessary to protect a public interest or to carry out any of the legal procedures and rights.
Several local entities have boosted their data protection requirements to ensure safety. Abu Dhabi's financial hub ADGM, for instance, amended its data protection regulations in September, with clearer guidelines on a wider scale to protect sensitive personal data, especially for the most vulnerable.
“The government’s clear long-term vision and commitment to technology leadership … [helps] advance its Vision 2031 goals and the work of the Office of Artificial Intelligence [to] drive national adoption,” Mr El Hamzawi said.
Among the notable organisations in the UAE using OpenAI technology are AI major G42; sovereign wealth fund Mubadala; the Abu Dhabi Investment Council; Aldar Properties; and buy-now-pay-later platform Tabby, according to OpenAI.
The company also counts educational institutions, including Mohamed bin Zayed University of Artificial Intelligence, Khalifa University, NYU Abu Dhabi, Higher Colleges of Technology and United Arab Emirates University, among its growing user base.
OpenAI is also spearheading the development of Stargate UAE, the 1-gigawatt mega data centre in Abu Dhabi, said to be the world's biggest, in co-operation with Oracle, Nvidia, SoftBank Group and Cisco to create Stargate UAE.
