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US FTC opens investigation into OpenAI over misleading statements

2023-07-13 19:44 by
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The Federal Trade Commission is investigating OpenAI for possible violations of consumer protection law, seeking extensive records from the maker of ChatGPT about its handling of personal data, its potential to give users inaccurate information and its "risks of harm to consumers, including reputational harm."

The inquiry is also seeking to understand how OpenAI has addressed the potential of its products to generate false, misleading, or disparaging statements about real individuals. In the AI industry, these false generations are sometimes called "hallucinations" or "confabulations."

Artificial intelligence has become a hot issue in Washington, with lawmakers trying to understand whether new laws are needed to protect intellectual property and consumer data in the age of generative AI, which requires massive datasets to learn. The FTC and other agencies have emphasized that they already have legal authority to pursue harm created by AI.

This is not the first regulatory hurdle for OpenAI. The company faced backlash in Italy in March, when regulators blocked ChatGPT over accusations that OpenAI had breached the European Union's GDPR privacy regulations. The ChatGPT service was later reinstated after OpenAI agreed to incorporate age-verification features and provide European users with an option to block their data from being used to train the AI model.

Read more -here-


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