OpenAI Faces FTC Investigation Over ChatGPT
The AI text generator ChatGPT, created by San Francisco-based startup OpenAI, has been under scrutiny by the U.S. Federal Trade Commission (FTC) over potential violations of consumer protection laws.
The FTC has been investigating OpenAI since at least November, according to sources familiar with the probe. The investigation comes as ChatGPT’s rapid rise in popularity has brought more attention to potential issues around transparency, data privacy, and responsible AI development.
ChatGPT, released in late November, uses a machine learning technique known as large language models. It has amazed many with its ability to provide informative, coherent responses to a wide range of questions. However, some have raised concerns about its potential to spread misinformation, bias, and toxicity.
The FTC probe is focused on whether OpenAI has been adequately transparent about ChatGPT and taken proper steps to mitigate the potential risks of the technology. Key issues the FTC is examining include:
• Data privacy: The FTC wants to know what data ChatGPT was trained on and how that data was obtained. There are also questions about what data the model collects when people interact with it.
• Transparency: The FTC wants to understand how OpenAI is being transparent with users about ChatGPT’s limitations and risks. Critics have argued the “chatbot” is not sufficiently upfront about its shortcomings.
• Responsible development: The investigation aims to determine if OpenAI took proper precautions in developing ChatGPT to minimize harmful biases and outputs. Several analyses have found the model can produce toxic or prejudiced responses.
OpenAI has said it is cooperating fully with the FTC’s questions. The investigation is still in early stages and no official action has been taken against OpenAI. But it shows regulators are paying close attention to large language models and how they are developed and deployed responsibly.
How OpenAI responds to the FTC’s concerns could set an important precedent for the ethical and safe adoption of new AI technologies going forward.