The Federal Trade Commission (FTC) is currently conducting an investigation into OpenAI, the creator of ChatGPT, over potential consumer harm resulting from its data collection practices and dissemination of false information. The FTC sent a 20-page letter to OpenAI requesting documents related to the development and training of its large language models, as well as information about data security measures.
The FTC’s inquiry specifically aims to gather detailed information about how OpenAI screens and verifies information used in training its models. It also seeks to understand the measures in place to prevent false claims from being presented to ChatGPT users. Additionally, the FTC wants to gain insight into how OpenAI’s application programming interfaces (APIs) connect to its systems and the steps taken to protect data when accessed by third-party entities.
Both the FTC and OpenAI have refrained from providing detailed comments regarding the investigation, leaving many questions unanswered.
This investigation represents the first major inquiry into OpenAI by a US regulatory body. OpenAI rose to prominence in the past year with the launch of ChatGPT, which garnered significant popularity. The success of ChatGPT and similar large language models triggered an artificial intelligence (AI) arms race, prompting competitors like Google and Meta to release their own models.
The use of large language models can sometimes result in the dissemination of inaccurate information. OpenAI acknowledges this concern and warns ChatGPT users that it may occasionally produce incorrect facts. Moreover, Google’s chatbot Bard faced criticism after its initial public demonstration displayed notable inaccuracies. On a personal level, both ChatGPT and Bard have generated highly flattering, yet completely fabricated, facts about users. Notably, some individuals faced legal repercussions for submitting fabricated cases created by ChatGPT, and a radio host from Georgia sued OpenAI after the model produced results falsely accusing him of embezzlement.
The interest in AI and its implications has prompted US lawmakers to examine the technology closely. Policymakers are aiming to understand AI’s functionalities and consider implementing regulations to govern its use. The Biden administration recently unveiled a plan to establish a responsible framework for AI development and investment in research centers. This initiative involves a $140 million commitment. Supreme Court Justice Neil Gorsuch also engaged in conversations about the legal liability associated with chatbots earlier this year.
Given the increasing scrutiny from regulatory bodies and policymakers, OpenAI CEO Sam Altman has taken steps to engage with Washington. Altman has lobbied Congress to establish AI regulations that can ensure ethical and responsible AI deployment.
As the investigation unfolds, it will be interesting to see how OpenAI responds to the FTC’s requests and addresses concerns related to data privacy, false information, and consumer harm. The outcome of this investigation may have broader implications for the AI industry and potentially influence future regulations and best practices in the field of AI.
