OpenAI Faces FTC Investigation Over AI Tools’ Impact on Consumers

OpenAI, the leading artificial intelligence research organization, is currently under investigation by the Federal Trade Commission (FTC) regarding potential harm to consumers caused by its AI-powered tools, including ChatGPT. The FTC, in a letter sent to OpenAI, expressed concerns over whether the company has engaged in unfair or deceptive practices related to data security and the risks of harm to consumers. The investigation will also determine if imposing fines on OpenAI would be in the public interest.

The FTC’s inquiry into OpenAI’s practices was revealed in a 20-page document, as first reported by The Washington Post and later confirmed by The Wall Street Journal. The federal agency is seeking detailed information from OpenAI about the development and training processes of its large language models. Additionally, the FTC is requesting information about OpenAI’s policies and procedures for assessing risk and safety prior to the release of new products.

OpenAI has yet to respond to FOX Business’ request for comment on the investigation, and the FTC has declined to provide further comments at this time.

The FTC’s scrutiny of OpenAI comes after months of expressing concerns about the potential risks associated with generative AI tools like ChatGPT. FTC Chair Lina Khan, in an April press event, warned that the agency would take action against any unlawful behavior facilitated by AI tools. She emphasized that AI is not exempt from existing laws and regulations, and the FTC is committed to addressing unfair, deceptive practices, and anti-competitive behaviors in the AI space.

During a recent testimony before the House Judiciary Committee, Chair Khan reiterated the FTC’s concerns about AI tools and their impact on consumers. She highlighted instances where sensitive information or defamatory content has been generated by AI-powered systems, emphasizing that such fraudulent and deceptive practices are a significant concern for the agency.

OpenAI’s investigation by the FTC reflects the growing scrutiny of AI technologies and their potential impact on consumers’ well-being, privacy, and security. As AI continues to evolve, regulators are seeking to ensure that adequate safeguards and ethical standards are in place to protect consumers from potential harms. The outcome of the FTC’s investigation will shed light on the responsibilities of AI developers and the extent of regulatory oversight required in this rapidly advancing field.