OpenAI is being investigated by the Federal Trade Commission (FTC) over possible violation of consumer protection laws, becoming the toughest faced since the company appeared on the scene in November.
The investigation will focus on the ChatGPT chatbot, and whether it’s caused harm to consumers, through the collection of data, and the occasional output of false information. This act is called “hallucinating” and can have major consequences, especially if the information is detrimental.
It will take into account how OpenAI trains models and tools to handle personal data.
The FTC began by sending OpenAI a 20-page investigative demand, that calls on OpenAI to hand over information regarding complaints received from the public, and details of any lawsuits.
The FTC is also demanding information on the data leaked disclosed by the company earlier this year, around the temporary exposure of users’ chat history and payment data.
Due to AI’s talents in a range of tasks including; conversing in a human like way, performing any tasks smarter and more efficiently, assisting by “automating tedious and error-prone operational work, bringing years of clinical data to a clinician’s fingertips in seconds, and by modernising health systems infrastructure,” and the possibility it could lead to countless job losses, and societal upheavals, there is talk surrounding the risk it could cause harm.
At the moment, FTC are focused on the company’s operations, and to see if any consumer protection laws have been violated.
