The U.S. Federal Trade Commission (FTC) has recently launched an investigation into OpenAI, the creator of ChatGPT, a popular language model. The probe aims to determine whether OpenAI has engaged in unfair practices that may have harmed the reputation of consumers.
In a 20-page letter, the FTC called upon OpenAI to provide a detailed account of the steps it has taken to address and mitigate any risks related to its Large Language Model Products. The commission specifically highlighted concerns regarding the generation of false, misleading, or disparaging statements about real individuals.
While the FTC declined to comment on the matter, The Washington Post was the first to report on the investigation. As of now, OpenAI has not responded to requests for comment.
This significant action taken by the FTC reflects its growing attention towards addressing the risks associated with rapidly evolving artificial intelligence (AI) technologies. After largely overlooking the growth and negative impacts of social media for years, regulators are keen to be proactive when it comes to the potential risks posed by AI. Notably, this investigation serves as a pivotal moment in the tenure of FTC Chair Lina Khan, who has pledged to confront the dominance of Big Tech on anticompetitive grounds. Despite a few setbacks in prominent cases, Khan remains determined. Additionally, rumors of a forthcoming crackdown on Amazon.com Inc. are still yet to materialize.
The FTC’s Pursuit of Artificial Intelligence Regulation
In the face of recent setbacks regarding proposed acquisitions by Meta Platforms Inc. and Microsoft Corp., the Federal Trade Commission (FTC) is now setting its sights on artificial intelligence (AI) as a potential win. Experts who closely follow the FTC and its Chair, Lina Khan, believe that AI regulation is the next logical target for the agency.
With President Joe Biden and lawmakers across party lines recognizing the need to rein in the fast-paced development of the industry, efforts are being made to address the impact of AI on employment, information dissemination, and civil rights. Senate Majority leader Chuck Schumer plans to host a series of forums to explore comprehensive legislation that will not only promote AI advancement but also enforce necessary safeguards.
However, the United States has fallen behind other global regulators in this area. For instance, European Union lawmakers are in the final stages of passing landmark legislation that prohibits the use of AI for predictive policing and imposes restrictions on high-risk applications.
In March, Italian regulators temporarily suspended ChatGPT, developed by OpenAI, due to concerns that the company violated the European Union’s General Data Protection Regulation (GDPR) – which safeguards user privacy. To reinstate ChatGPT, OpenAI agreed to implement age-verification features and allowed European users the option to block their personal information from being used in AI training.
The FTC’s pursuit of AI regulation demonstrates its commitment to protecting consumers and ensuring responsible deployment of AI technologies. The agency recognizes the need to catch up with international counterparts and proactively address potential risks associated with AI. As the industry continues to evolve, the FTC aims to enforce existing laws while also adapting to the changing landscape to effectively oversee AI applications in the United States.
