OpenAI CEO Sam Altman expressed his disappointment after a leak revealed that the US Federal Trade Commission (FTC) is investigating his company regarding potential breaches of consumer protection laws. The investigation focuses on OpenAI’s utilization of public data and the dissemination of false information through its popular chatbot, ChatGPT. Altman took to Twitter to express his disappointment, emphasizing the need for trust and assuring the public of OpenAI’s commitment to safety and pro-consumer technology. The FTC has yet to make an official statement regarding the investigation.
According to The Washington Post, which first reported on the investigation, the FTC has issued a 20-page civil investigative demand (CID) outlining the scope of the probe. The demand requires OpenAI to schedule a telephone meeting with the FTC’s legal counsel within 14 days and prohibits the destruction of any relevant documents.
The investigation primarily focuses on whether OpenAI has engaged in unfair or deceptive practices, particularly concerning privacy, data security, and the potential harm to consumers, including reputational harm. As technology, particularly artificial intelligence (AI), continues to advance, concerns regarding its potential dangers have been raised. OpenAI’s generative AI platform, ChatGPT, has gained significant popularity since its launch late last year, attracting over 100 million users in just a few months. The surge in interest in AI-powered products has translated into substantial investments, with over $4.2 billion poured into generative AI start-ups in 2021 and 2022 through 215 deals, according to CB Insights.
However, critics have voiced concerns about the regulation of AI, highlighting the risks associated with the technology. While AI tools and automation technology have the capability to enhance productivity and efficiency, there are apprehensions regarding their potential to replace human workers, cause job losses, and perpetuate disinformation through false images and videos that can influence elections.
Calls for regulations on AI have been made by prominent figures in the industry. In May, scientists and tech industry leaders, including Sam Altman and Geoffrey Hinton, known as the godfather of AI, signed a statement acknowledging the dangers posed by AI to humanity. Elon Musk and over 1,000 researchers and technology experts have also urged a pause in AI development, citing profound risks to society. OpenAI’s CEO, Altman, has emphasized the need for regulation and encouraged Congress to impose new rules on Big Tech.
The focus of the FTC’s investigation into OpenAI centers on understanding the company’s ownership and operation of websites and mobile applications. The FTC also aims to identify the third parties that have access to OpenAI’s large language models and ascertain if this access is paid or unpaid. Additionally, the demand requires OpenAI to disclose its top ten customers or licensors and provide information about how they obtain and utilize consumer data, including the algorithms used.
OpenAI must also outline the steps it has taken to assess and mitigate risks associated with its technology. The company is expected to address any false, misleading, or disparaging statements regarding real individuals. As the investigation unfolds, OpenAI will collaborate with the FTC and work towards resolving any concerns raised.
Overall, the leak of the FTC’s investigation into OpenAI has drawn attention to the need for regulation and oversight in the AI industry. As technology continues to advance rapidly, it is essential to address potential risks and ensure the safety and protection of consumers.
