OpenAI Faces Backlash as Users Delete ChatGPT Amid Privacy Concerns and Legal Challenges

OpenAI, the creator of ChatGPT, is navigating a period of heightened scrutiny and user attrition as concerns mount over data privacy practices and legal disputes surface. A recent trend of users deleting the ChatGPT app, coupled with a lawsuit alleging the chatbot engaged in the unauthorized practice of law, is challenging the company’s dominance in the artificial intelligence landscape.

User Exodus Driven by Data Privacy Fears

In late February 2026, reports emerged of a significant increase in ChatGPT app deletions, coinciding with public discussions surrounding OpenAI’s updated data processing rules. Analytics indicate a nearly threefold increase in app deletions during this period, signaling a growing distrust among users regarding the security of their personal information. This dissatisfaction is also reflected in app store ratings, with a surge in one-star reviews and a decline in overall downloads.

The Rise of Alternatives: Claude Gains Traction

As users express concerns about OpenAI’s data policies, alternative AI chatbots are gaining popularity. Anthropic’s Claude has experienced a notable surge in users, even surpassing ChatGPT as the top AI app on the US App Store. Anthropic has publicly emphasized its commitment to user privacy and its refusal to grant unrestricted access to its models to external authorities, a stance that resonates with users seeking more secure AI solutions. Anthropic CEO Dario Amodei previously rejected a similar contract with the US Department of Defense, citing concerns over mass surveillance and security risks.

Legal Challenges: OpenAI Accused of Practicing Law Without a License

Adding to OpenAI’s challenges, Nippon Life Insurance Company of America has filed a lawsuit against the company, alleging that ChatGPT provided faulty legal advice to an employee, Graciela Dela Torre, leading her to reopen a settled disability benefits claim. The lawsuit claims ChatGPT engaged in the unauthorized practice of law and encouraged Dela Torre to breach the settlement agreement, resulting in numerous unnecessary filings with the court. Reuters and ABA Journal have reported on this developing legal case.

Impact in Latvia and Beyond

The trend of user concern extends beyond the United States. In Latvia, ChatGPT has been popular among office workers, women, and young adults, reaching nearly 190,000 monthly users as of recently. However, growing awareness of data privacy issues is prompting Latvian users to reconsider their reliance on the chatbot and explore safer alternatives. Latvian companies and households are expected to prioritize data security when selecting AI tools.

Shifting Market Dynamics and User Preferences

The current situation highlights a shift in the AI market, with users increasingly valuing transparency and data security alongside intelligence and speed. Competitors like Perplexity and Google Gemini are gaining prominence as users seek tools that clearly define their data usage policies. The case serves as a reminder that even established tech giants can quickly lose user trust if their decisions do not align with societal values.

Key Takeaways

• User concerns over data privacy are driving a decline in ChatGPT usage.
• Anthropic’s Claude is emerging as a leading alternative, emphasizing user privacy.
• OpenAI is facing legal challenges related to the unauthorized practice of law.
• Data security is becoming a critical factor in user adoption of AI tools.

Looking ahead, the future of AI will likely be shaped by companies that prioritize not only technological innovation but also ethical data handling and user privacy. Those who can offer both intelligent assistance and robust data protection will be best positioned to succeed in this evolving landscape.