The Federal Trade Commission is investigating whether OpenAI’s viral chatbot ChatGPT has harmed people by generating false information about them.
It looks into OpenAI’s potential engagement “in unfair or deceptive practices relating to risks of harm to consumers, including reputational harm.”
The commission is specifically looking at the steps taken by the firm to address or mitigate the risk of generating false, misleading, or disparaging statements about real individuals.
Read More: Elon Musk launches new AI company to rival ChatGPT
This investigation, led by FTC Chair Lina Khan, represents a significant escalation in the government’s role of overseeing emerging technologies.
Khan expressed concerns AI-driven apps like ChatGPT lack effective checks on the data they can access.
She said: “We’ve heard about reports where people’s sensitive information is showing up in response to an inquiry from somebody else.
“We’ve heard about libel, defamatory statements, flatly untrue things that are emerging.
“That’s the type of fraud and deception that we are concerned about.”
Read More: Publishers and advertisers fight FTC’s ‘click-to-cancel’ mandate in court
Critics of the FTC’s probe argue the agency may be overstepping its jurisdiction.
Adam Kovacevich, founder of the industry trade group Chamber of Progress, said: “When ChatGPT says something wrong about somebody and might have caused damage to their reputation, is that a matter for the FTC’s jurisdiction?
“I don’t think that’s clear at all.”
OpenAI’s CEO, Sam Altman said it is “disappointing to see the FTC’s request start with a leak and does not help build trust.”
He assured the company’s cooperation with the FTC’s investigation.
Read More: Zoho looking to rival OpenAI and Google with new AI developments
The FTC possesses broad authority to regulate unfair and deceptive business practices that may harm consumers and undermine fair competition.
However, critics argue the agency has occasionally exceeded its authority, as seen by a recent federal judge’s dismissal of the FTC’s attempt to block Microsoft’s acquisition of Activision Blizzard.
The FTC requested detailed information about OpenAI’s data security practices in its civil subpoena.
It references a 2020 incident where a bug allowed users to access others’ chat information and payment-related data.
Need Career Advice? Get employment skills advice at all levels of your career
The subpoena covers various topics, including the company’s marketing efforts, AI model training practices, and handling of users’ personal information.
The Biden administration has begun exploring the need for accountability measures and regulation in artificial intelligence.
OpenAI itself has called for increased government oversight of AI development.
Mr Altman has advocated establishing licensing and safety standards for advanced AI systems, recognizing the importance of responsible AI use to avoid detrimental consequences.
