FTC investigating OpenAI on ChatGPT data collection and publication of false information

The Federal Trade Commission (FTC) is investigating ChatGPT creator OpenAI over possible consumer harm through its data collection and the publication of false information.

First reported by The Washington Post, the FTC sent a 20-page letter to the company this week. The letter requests documents related to developing and training its large language models, as well as data security.

The FTC wants to get detailed information on how OpenAI vets information used in training for its models and how it prevents false claims from being shown to ChatGPT users. It also wants to learn more about how APIs connect to its systems and how data is protected when accessed by third parties.

The FTC declined to comment. OpenAI did not immediately respond to requests for comment.

This is the first major US investigation into OpenAI, which burst into the public consciousness over the past year with the release of ChatGPT. The popularity of ChatGPT and the large language models that power it kicked off an AI arms race prompting competitors like Google and Meta to release their own models.

The FTC has signaled increased regulatory oversight of AI before. In 2021, the agency warned companies against using biased algorithms. Industry watchdog Center for AI and Digital Policy also called on the FTC to stop OpenAI from launching new GPT models in March.

Large language models can put out factually inaccurate information. OpenAI warns ChatGPT users that it can occasionally generate incorrect facts, and Google’s chatbot Bard’s first public demo did not inspire confidence in its accuracy. And based on personal experience, both have spit out incredibly flattering, though completely invented, facts about myself. Other people have gotten in trouble for using ChatGPT. A lawyer was sanctioned for submitting fake cases created by ChatGPT, and a Georgia radio host sued the company for results that claimed he was accused of embezzlement.

US lawmakers showed great interest in AI, both in understanding the technology and possibly looking into enacting regulations around it. The Biden administration released a plan to provide a responsible framework for AI development, including a $140 million investment to launch research centers. Supreme Court Justice Neil Gorsuch also discussed chatbots’ potential legal liability earlier this year.

It is in this environment that AI leaders like OpenAI CEO Sam Altman have made the rounds in Washington. Altman lobbied Congress to create regulations around AI.

William Pittard

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