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FTC Investigates ChatGPT over Consumer Protection Concerns

July 13, 2023
in Blockchain
Reading Time: 2 mins read
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The U.S. Federal Commerce Fee (FTC) has begun a radical test into OpenAI, the corporate from San Francisco that created the well-known AI chatbot, ChatGPT. Information shops The Washington Publish reported on July 13, 2023, that this test is to see if OpenAI has gone in opposition to legal guidelines that hold prospects secure, probably placing their private reputations and information in danger.

The FTC has issued a 20-page demand for information to OpenAI, looking for to know extra about how the corporate handles potential issues associated to their AI fashions. This authorities company is especially checking if OpenAI has been unfair or deceptive, inflicting harm to folks’s reputations.

The FTC’s inquiry extends to a safety incident that OpenAI disclosed in March 2023. A bug in OpenAI’s methods had allowed some customers to view payment-related info and a few information from different customers’ chat historical past. The FTC is probing whether or not OpenAI’s information safety practices on this incident violated shopper safety legal guidelines.

The FTC can also be looking for info on any analysis, testing, or surveys carried out by OpenAI that assess how properly shoppers perceive the “accuracy or reliability of outputs” generated by its AI instruments. Moreover, the FTC has requested particulars about how OpenAI licenses its fashions to different corporations.

This investigation comes within the wake of earlier considerations raised about OpenAI’s practices. In March 2023, the Heart for AI and Digital Coverage (CAIDP) requested the FTC to analyze OpenAI for alleged violations of shopper safety guidelines, citing that the rollout of AI textual content technology instruments has been “biased, misleading, and a danger to public security,” as reported by The Verge.

The CAIDP had identified potential threats from OpenAI’s GPT-4 generative textual content mannequin, together with the manufacturing of malicious code, extremely tailor-made propaganda, and the potential for biased coaching information to lead to unfair race and gender preferences in areas corresponding to hiring.

The FTC’s investigation into OpenAI represents a big step within the company’s ongoing curiosity in regulating AI instruments. It has beforehand warned that biased AI methods may draw enforcement motion. An investigation of OpenAI, one of many main gamers within the generative AI discipline, marks a significant escalation within the FTC’s efforts.

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Tags: ChatGPTconcernsConsumerFTCInvestigatesProtection
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