OpenAI’s AI-powered chatbot app, ChatGPT, is currently under investigation by the US Federal Trade Commission (FTC) over concerns of potential harm caused to consumers. The popular app, developed by OpenAI, has faced criticism for its accuracy and the negative impact it may have on users.
The FTC’s investigation, led by Chair Lina Khan, focuses on whether OpenAI has engaged in unfair or deceptive practices related to risks of harm to consumers, including reputational harm. In a civil subpoena made public on Thursday, the FTC asked OpenAI to provide detailed information about the measures taken to address or mitigate the risks of false, misleading, or disparaging statements being generated by the company’s large language model products.
One particular area of concern raised by the FTC is the lack of checks on the data that chatbots like ChatGPT can mine, which has led to instances where people’s sensitive information has been revealed. Reports have also emerged of libel, defamatory statements, and falsehoods being generated by the chatbot, prompting concerns of fraud and deception.
Critics of the FTC, however, question the agency’s jurisdiction in cases where ChatGPT has caused reputational damage to individuals. Adam Kovacevich, founder of the industry trade group Chamber of Progress, argues that these matters fall under the category of speech regulation, which is beyond the FTC’s authority.
OpenAI’s CEO, Sam Altman, expressed disappointment with the FTC’s request but stated that the company will cooperate with the agency. Altman took to Twitter to express his disappointment, highlighting that the leak of the subpoena hinders the building of trust between the FTC and OpenAI.
Marc Rotenberg, president of the Center for AI and Digital Policy, filed a complaint against ChatGPT in March. While he acknowledges the unclear jurisdiction of the FTC over defamation, Rotenberg argues that misleading advertising and disinformation related to commercial practices do fall within the agency’s purview.
The FTC holds extensive authority to regulate unfair and deceptive business practices that could harm consumers and stifle fair competition. However, critics claim that the agency has occasionally overstepped its authority. A recent example is a federal judge’s decision to dismiss the FTC’s attempt to block Microsoft’s acquisition of Activision Blizzard.
The Biden administration has also recognized the need for regulations on artificial intelligence tools like ChatGPT. The Commerce Department issued a public request for comment in April, seeking input on accountability measures for AI. The White House’s Office of Science Technology Policy is actively working on strategies to address the benefits and potential harms of AI, including privacy concerns and electoral disruption.
Lawmakers from both parties, led by Senate Majority Leader Chuck Schumer, are prioritizing the regulation of artificial intelligence in the current Congress. However, lawmakers are cautious about potential impacts on US innovation and the need to compete with China in dominating the AI market.
OpenAI’s creators have themselves called for increased government oversight of AI development. CEO Sam Altman testified before Congress in May, urging lawmakers to establish licensing and safety standards for advanced AI systems. Altman acknowledges both the potential and risks of AI, emphasizing the importance of proper management to avoid disastrous consequences.
The ongoing investigation into ChatGPT by the FTC represents a significant step in the US federal government’s involvement in regulating emerging technologies. As the investigation unfolds, the outcome could have far-reaching implications for the AI industry and the regulations placed on AI-driven apps like ChatGPT.
