FTC probing OpenAI over consumer protection concerns

The US Federal Trade Commission (FTC) has launched an investigation into artificial intelligence (AI) company OpenAI over allegations of violating consumer protection laws and jeopardising personal reputations and data, it was reported on Thursday.

According to Reuters, the FTC recently dispatched a 20-page request for records concerning the ChatGPT operator’s approach to addressing risks associated with its AI models.

It said the investigation was looking to determine whether the company had engaged in unfair or deceptive practices leading to reputational harm for consumers.

Of particular interest were the company's efforts to tackle the possibility of its products generating false, misleading, or disparaging statements about real individuals.

Reuters said both the FTC and OpenAI had refrained from making official statements on the matter thus far.

OpenAI faced similar issues earlier this year in Italy when its ChatGPT service was temporarily taken offline due to allegations of violating the European Union's General Data Protection Regulation (GDPR).

However, after agreeing to implement age verification features and granting European users the ability to block their data from being used to train the AI model, OpenAI was permitted to reinstate its ChatGPT service.

Reporting by Josh White for Sharecast.com.