It’s clear that companies are currently unable to make chatbots like ChatGPT comply with EU law, when processing data about individuals. If a system cannot produce accurate and transparent results, it cannot be used to generate data about individuals. The technology has to follow the legal requirements, not the other way around.
Jpg is a lossy compression algorithm. Statistical probability of words occuring in sequence is not compression. That’s like saying generative images are compression, they aren’t. It’s not producing blurry matches of images, it’s producing something “novel”. Otherwise, that would be considered over fitting the data.