The U.S. Federal Trade Commission (FTC) has launched an investigation into OpenAI’s ChatGPT following concerns related to potential consumer protection law violations. This move comes after the company faced a series of legal issues involving its AI model.
The investigation was triggered by a defamation lawsuit filed against OpenAI by a Georgia radio host. The host claimed that ChatGPT had damaged his reputation by falsely linking him to criminal activities. Similarly, an Australian mayor threatened OpenAI with a lawsuit after the model seemingly implicated him in a foreign bribery scandal.
As a result of these events, the FTC has requested increased transparency from OpenAI. In a 20-page Civil Investigative Demand letter, the agency seeks detailed information on the company’s operations, including insights into the marketing and training of the AI model, risk assessment strategies, privacy mitigation measures, data collection methods, and information on API and plugin integrations. The commission has also asked for internal communications discussing the potential for AI models to produce inaccurate statements about individuals or reveal personal information.
While both the FTC and OpenAI have chosen not to comment on the matter, FTC Chair Lina Khan has emphasized the need to regulate AI software. During a hearing before the US House oversight committee, she stated that the Commission was committed to promoting fair competition and protecting consumers from any unethical practices.
OpenAI has previously faced multiple lawsuits over copyright violations, with allegations suggesting that the AI models were trained on copyrighted materials. Additionally, the company is currently involved in a lawsuit alleging privacy violations, alongside its partner Microsoft.
Microsoft’s integration of OpenAI’s models into its software infrastructure, such as the OpenAI-powered Copilot on GitHub and the incorporation of the ChatGPT/GPT-4 model into Bing’s search engine, highlights the tech industry’s growing interest in AI applications.
However, OpenAI CEO Sam Altman expressed concerns about regulating this technology during a Senate Judiciary Committee meeting in May. While he acknowledged the importance of AI regulation, Altman emphasized the need for a balanced approach that ensures safety while still allowing access to the benefits of the technology.
The FTC investigation comes as a surprise and sheds light on the challenges of regulating AI software. As the investigation unfolds, it remains to be seen how OpenAI will navigate these legal obstacles while continuing to innovate in the field of artificial intelligence.
