The U.S. Federal Trade Commission (FTC) has launched an investigation into OpenAI’s ChatGPT, a cutting-edge AI model, following concerns about potential violations of consumer protection laws. The FTC is specifically looking into allegations of reputational damage and privacy infringement caused by ChatGPT.
The investigation comes after OpenAI faced a series of legal issues related to their AI model. One such incident involved a defamation lawsuit filed by a Georgia radio host who claimed that ChatGPT had falsely linked him to criminal activities, causing damage to his reputation. Another incident occurred in April when an Australian mayor threatened legal action against OpenAI after the model seemed to implicate him in a foreign bribery scandal.
In response to these events, the FTC has demanded increased transparency from OpenAI. It has issued a 20-page Civil Investigative Demand letter requesting detailed information about the company’s operations. The commission is particularly interested in learning more about the marketing and training of OpenAI’s AI model, as well as its risk assessment strategies. Additionally, the FTC wants insights into OpenAI’s privacy mitigation measures, data collection methods, and information on API and plugin integrations. Internal communications that discuss the potential of AI models to produce inaccurate statements about individuals or reveal personal information are also being sought.
Both the FTC and OpenAI have refrained from providing comments on the matter. However, FTC Chair Lina Khan emphasized the importance of regulating AI software, stating the commission’s commitment to protecting consumers from unethical practices while promoting fair competition.
OpenAI has faced legal challenges in the past, including lawsuits over alleged copyright violations. Accusations have claimed that the AI models were trained on copyrighted materials. OpenAI is also currently involved in a lawsuit alleging privacy violations, in conjunction with Microsoft, which has been integrating OpenAI’s models into its software infrastructure. This integration is evidence of the tech industry’s growing enthusiasm for AI applications. For instance, Microsoft’s release of the OpenAI-powered Copilot from GitHub demonstrates the influence OpenAI’s technology has had. Bing’s search engine has also incorporated the ChatGPT/GPT-4 model.
Despite the need for AI regulation, OpenAI CEO Sam Altman expressed concerns during a Senate Judiciary Committee meeting in May. Altman emphasized the importance of balancing regulation to ensure safety while preserving access to the benefits of AI technology. However, it appears that the FTC investigation was not anticipated by Altman.
In summary, the FTC has commenced an investigation into OpenAI’s ChatGPT due to concerns about potential violations of consumer protection laws. The investigation focuses on reputational damage and privacy infringement. OpenAI is facing increased demands for transparency from the FTC, which has issued a detailed letter seeking information regarding various aspects of the company’s operations. While OpenAI CEO Sam Altman has previously expressed concerns about AI regulation, the investigation by the FTC is a new development.
