ChatGPT-Creator OpenAI Faces US FTC Probe Over Risks Posed By AI Chatbots: Report

Regulators worldwide are scrutinising generative AI products due to concerns raised by AI experts and ethicists.

Experts have expressed concerns about the extensive data collection performed by language models like ChatGPT.

The US Federal Trade Commission (FTC) has initiated an official investigation into OpenAI, the creator of the AI chatbot ChatGPT. This marks the first time US regulators are examining the potential risks associated with AI chatbots, reported Financial Times. The FTC's probe will focus on whether individuals have been harmed by ChatGPT generating false information about them, as well as OpenAI's privacy and data security practices, which could be deemed "unfair or deceptive."

Regulators worldwide are scrutinising generative AI products due to concerns raised by AI experts and ethicists. These concerns encompass the vast amount of personal data consumed by the technology and the potential negative consequences, such as the spread of misinformation and the generation of sexist and racist comments.

In May, the FTC issued a warning to the industry, expressing its intense focus on how companies utilise AI technology, including new generative AI tools, in ways that impact consumers significantly.

In the letter sent to OpenAI, the FTC requested internal information ranging from user data retention practices to the steps taken by the company to mitigate the risk of ChatGPT producing false, misleading, or disparaging statements. The FTC declined to comment on the letter, while OpenAI CEO Sam Altman expressed disappointment about the leak and emphasised the company's commitment to safety and consumer welfare.

During a House judiciary committee hearing, FTC Chair Lina Khan faced criticism from Republican lawmakers regarding her enforcement approach. Although she refrained from commenting on the investigation, she highlighted the broader concerns surrounding ChatGPT and similar AI services that ingest vast amounts of data without proper checks on its nature.

Experts have expressed concerns about the extensive data collection performed by language models like ChatGPT. OpenAI reported over 100 million monthly active users shortly after its launch. OpenAI's technology also powers Microsoft's Bing search engine, which attracted over 1 million users across 169 countries within two weeks of its release.

Users have reported instances where ChatGPT fabricated names, dates, facts, and even provided false links to news websites and references to academic papers, a phenomenon known as "hallucinations" within the industry.

The FTC's investigation delves into technical aspects of ChatGPT's design, including OpenAI's efforts to address hallucinations and the oversight of human reviewers. The probe also seeks information on consumer complaints and OpenAI's measures to assess users' understanding of the chatbot's accuracy and reliability.

In March, Italy's privacy watchdog temporarily banned ChatGPT due to concerns over personal data collection following a cybersecurity breach. OpenAI made its privacy policy more accessible and introduced age verification tools, leading to the restoration of the chatbot a few weeks later.

Altman acknowledged the limitations of ChatGPT, stating that OpenAI is transparent about its technology's shortcomings and is not driven by unlimited returns due to its capped-profit structure. He emphasised that user privacy is safeguarded, and the system is designed to learn about the world rather than specific individuals, drawing on years of safety research.

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