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Ftc Investigation On Openai: US FTC opens investigation into ‘risks of harm’ of ChatGPT – Times of India

The United States Federal Trade Commission (FTC) has opened an investigation into OpenAI, the AI startup behind the popular generative AI products, ChatGPT and DALL-E. An investigation is underway to establish if ChatGPT’s collection of data and distribution of false information has caused any harm to its users.
The regulator has sent a 20-page letter to OpenAI in San Francisco. The letter expressed the agency’s interest in investigating OpenAI’s security practices, as first reported by The Washington Post. In the letter, the FTC requested that OpenAI provide the agency with relevant documents and additional details.
The FTC asked OpenAI numerous questions regarding the start-up’s AI model training and personal data handling. The officials have asked for documentation on how the company addresses risks associated with its extensive language AI models.
The Commission is seeking information regarding a bug that resulted in the sensitive data leak of ChatGPT users, such as their payment and chat histories, this year in March. OpenAI, the developer of the AI, claimed that only a small number of users were affected. However, the FTC is concerned that this may be due to inadequate security measures.
Additionally, the agency is interested in any complaints related to false or malicious statements made by the AI about individuals and information on how well users comprehend the accuracy of the products they are using.
Sam Altman, the CEO of OpenAI, in a tweet, expressed disappointment with the FTC’s request, which began with a leak and did not contribute to building trust. However, he stressed the importance of ensuring that their technology is safe and consumer-friendly and assured that they comply with legal requirements. Altman also stated that they would cooperate with the FTC.
OpenAI has previously faced regulatory pressure from Italy’s data protection authority in March for unlawfully collecting personal data from ChatGPT users without an age-verification system to prevent minors from exposure to illicit material. As a result, ChatGPT was banned temporarily. However, OpenAI made the necessary changes as requested by the authority and restored access to the system the following month.

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