FTC opens investigation into ChatGPT company OpenAI over inaccuracies, data protection

 The Federal Trade Commission has launched an inquiry into OpenAI, the company behind the ChatGPT artificial intelligence bot, for potential violations of consumer protection rules. 

The FTC asked OpenAI in a 20-page civil investigative demand letter to provide records and answer dozens of questions, some of which were related to the bot's tendency to generate inaccurate information and the company's data leak in March, to assist it in determining whether the company had put users' data and reputations at risk. The Washington Post was the first to report on the probe.



Douglas Farrar, a spokeswoman for the FTC, declined to comment. On Twitter, OpenAI CEO Sam Altman stated that the business will "of course" collaborate with the FTC and that it is "super important" that its technology is safe and pro-consumer.



The regulatory investigation follows OpenAI CEO Sam Altman's appearance in Congress in May, in which he asked for more government control in the field. The FTC's chairman has stated that the agency will not hesitate to take action against damaging commercial practices employing AI.

Concerns over AI's impact

The investigation comes amid increased concerns about AI technology's ability to disseminate misinformation and eliminate jobs.

In May, Geoffrey Hinton, a leading artificial intelligence engineer, warned that AI could one day take over the globe and drive humanity to extinction. In addition, Hinton and Altman were among hundreds of top figures who issued a warning in May that AI technology might be as lethal to humanity as nuclear weapons.


Despite these concerns, regulatory action in the United States has been delayed. According to Senate Majority Leader Charles Schumer, a comprehensive AI bill in the United States is likely months away. 

Meanwhile, European lawmakers approved the world's first complete set of artificial intelligence guidelines in June, with final approval due by the end of the year. 




The chair of the FTC is under fire.

The investigation comes as Democratic Federal Trade Commission Chair Lina Khan defends her term at the regulatory agency.

Under President Joe Biden, House Republicans have accused the FTC of becoming excessive and political. Khan responded to the criticism on Thursday, claiming that more regulation is needed as the firms have grown and that digital amalgamation might harm the economy and customers.

The Federal Trade Commission announced on Wednesday that it would appeal a US court decision allowing Microsoft to acquire gaming company Activision Blizzard for $69 billion.  




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