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ChatGPT Creator Faces First Major Regulatory Threat With FTC Investigation

July 13, 2023
in NFT
Reading Time: 2 mins read
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With synthetic intelligence (AI) flying excessive for Web3 and the broader the world to see and embrace, it shouldn’t be a shock that the Federal Commerce Fee (FTC) has turned its consideration to OpenAI, the maker of ChatGPT, in a brand new investigation, in keeping with an preliminary report by The Washington Put up. 

The company despatched the San Francisco startup a 20-page letter demanding solutions for the way it’s addressing ongoing complaints of misuse of client information and instances of “hallucination,” i.e., cases the place ChatGPT has made up information or narratives which have brought on reputational hurt.

The FTC’s ask

OpenAI will now function the FTC’s first public case research for the way the company begins to implement client safety warnings with respect to AI whereas addressing doubtlessly unfair or misleading commerce practices. The corporate’s co-founder Sam Altman testified earlier than Congress in Could, inviting AI laws to come back into the combo.

Within the letter, the FTC desires to gauge how effectively customers perceive “the accuracy or reliability of outputs” generated by the corporate’s AI instruments, calling on OpenAI to:

Present detailed descriptions of all of the complaints the startup has obtained of its merchandise, together with ChatGPT, making “false, deceptive, disparaging or dangerous” statements about individuals;

Present information associated to a safety incident that OpenAI disclosed in March when a system bug allowed some ChatGPT customers to see payment-related info along with buyer information from different consumer’s chat historical past;

Present any analysis, testing, or surveys that assess clients’ understanding of how OpenAI’s merchandise work, how they’re marketed, and the way these AI-based instruments can generate disparaging statements.

Zooming out

The FTC’s focus comes at a time when the company desires to discover a number of cases of hallucination. The company’s energetic mission is speaking that current client safety legal guidelines apply to AI, regardless of the Biden Administration’s and Congress’s ongoing battle to place collectively a regulatory framework. 

Final month, Senate Majority Chief Chuck Schumer (D-NY) predicted that new AI laws is only a few months away whereas the European Union’s AI Act strikes into its remaining phases of negotiations.

Vice President Kamala Harris believes that we are able to each advance AI innovation and shield customers, sharing the administration’s place on Wednesday on the White Home, the place Harris hosted a gaggle of client safety advocates and civil liberties to debate the protection and safety dangers of AI.

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Tags: ChatGPTcreatorfacesFTCInvestigationMajorregulatoryThreat
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