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FTC opens investigation into OpenAI and ChatGPT

OpenAI, the company that created ChatGPT, could be violating consumer protection laws and putting personal data at risk.

FTC opens investigation into OpenAI and ChatGPT

AI learning systems with linguistic models continue to advance and multiply rapidly. The U.S. government has been keen to take steps to ensure that generative AI complies with consumer privacy protection laws.

The Federal Trade Commission (FTC) has launched an investigation into OpenAI, the parent company and creator of ChatGPT and DALL-E, due to concerns that OpenAI may be compromising people’s personal data and reputations by breaching privacy protection laws. This is the first significant legislative challenge regarding the future application of AI, and comes at a time when OpenAI and other companies are actively seeking favor with regulators and the government.

The investigation was published by The Washington Post, which revealed that the agency sent OpenAI a 20-page document requesting records on how the company has addressed risks associated with its AI models, such as a recent incident of leaked payment and chat histories of ChatGPT users. The FTC is also requesting information on complaints related to false or malicious statements made by OpenAI’s AI about individuals, as well as data demonstrating users’ understanding of the product they are using and its potential to generate false or misleading information.

OpenAI CEO Sam Altman voluntarily testified before the U.S. Congress in May about the AI application, and also met with President Joe Biden and Vice President Kamala Harris.

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