US regulators are currently investigating the creators of ChatGPT, a popular AI chatbot, over concerns regarding potential misuse of personal data and the potential harm it could cause to individuals’ reputations. This investigation marks the most significant government challenge to the AI industry thus far.
The Federal Trade Commission (FTC) has recently issued a 20-page information request to San Francisco-based OpenAI, the company behind ChatGPT, regarding its data handling practices and safety measures. The FTC specifically seeks records of user complaints related to instances in which ChatGPT made false, misleading, disparaging, or harmful comments about individuals. Additionally, the agency wants to understand how OpenAI collects data and assesses safety before releasing new products to consumers.
Governments and regulators worldwide are racing to understand and regulate chatbot technologies such as ChatGPT and Google’s Bard. These chatbots, known as large language models, have come under scrutiny due to the vast amounts of data they consume in order to provide information. They have also faced criticism for generating misleading content by hallucinating facts.
The FTC’s information request also includes a demand for details on a bug that occurred in March, which exposed certain ChatGPT users’ conversation data. OpenAI has received legal threats from publishers and artists, alleging the use of copyrighted material to train ChatGPT. Additionally, individuals have threatened defamation lawsuits.
The FTC has the authority to fine companies and negotiate consent decrees, regulating how data is utilized. However, the agency, led by Chairman Lina Khan, has faced ongoing challenges when attempting to curtail the powers of big tech companies.
This investigation comes at a time when the FTC is under pressure following its recent loss in a significant legal battle against Microsoft and its failure to block other tech acquisitions. Most notably, the agency failed to prevent Microsoft’s acquisition of video game maker Activision Blizzard and Mark Zuckerberg’s Meta from buying virtual reality company Within. The FTC plans to appeal the Microsoft decision.
As of now, neither the FTC nor OpenAI have provided any immediate comment on the investigation. Lina Khan, who was appointed by President Joe Biden, is scheduled to address a Congressional committee on Thursday and will face questions about her performance from the Republican-controlled House of Representatives.
