US FTC opens investigation into ChatGPT over 'unfair practices'

ChatGPT maker OpenAI faces potential complications as it undergoes a probe by the FTC over algorithmic testing, adjustments, and alleged manipulation methods, especially in relation to generating different responses and addressing risks across multiple languages. 

US FTC opens investigation into ChatGPT over 'unfair practices'

The Federal Trade Commission in the United States has initiated an investigation into OpenAI, the maker of ChatGPT, over concerns that the chatbot may have harmed consumers. The investigation, as reported by The Washington Post on Thursday, poses the first major regulatory threat to OpenAI.

OpenAI finds itself facing potential complications with policymakers due to an ongoing probe, posing challenges for the company's relationship with key decision-makers. This investigation also puts a spotlight on OpenAI's involvement in the broader debate surrounding the impact of generative artificial intelligence on employment, national security, and democratic processes.

The Washington Post reported that the FTC recently issued a comprehensive 20-page demand, raising a multitude of inquiries. The document seeks clarification from OpenAI on various topics, including data sourcing for training language models, potential issues with ChatGPT generating false or disparaging statements about individuals, and the company's response to public complaints. The request also delves into legal matters, such as lawsuits involving OpenAI and details regarding a previous data breach.

The FTC's request delves into the intricacies of OpenAI's algorithmic testing, adjustments, and manipulation methods, especially in relation to generating different responses and addressing risks across multiple languages. Additionally, the commission seeks explanations regarding OpenAI's efforts to combat instances of "hallucination," where the AI generates false information.

This investigation represents a significant instance of direct US government involvement in regulating AI, a field in which lawmakers are striving to stay abreast of rapid advancements. While the US has been relatively slower in its regulatory efforts compared to international counterparts, such as the European Union, the FTC's actions highlight a growing need for oversight and accountability in the AI industry.

The FTC's probe is rooted in its previous warnings against exaggerated claims or discriminatory use of AI technology, signalling a firm stance on responsible AI development and deployment.

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