OpenAI, a Microsoft-backed startup that has gained popularity through its generative AI chatbot, ChatGPT, is being investigated by the U.S. Federal Trade Commission (FTC) over allegations that it has violated consumer protection laws and put personal data at risk.
The agency has sent a 20-page demand for records to OpenAI, seeking information on how it addresses the risks associated with its AI models. The probe is centred around the company's potential to cause reputational harm to consumers, as well as steps it has taken to address the potential of generating false, misleading or disparaging statements about individuals.
The FTC's aggressive stance against tech companies is in keeping with the increasingly stricter environment for tech regulations in the US. OpenAI has responded on Twitter that it will work with the FTC and that its latest AI technology is built on years of safety research. The investigation marks another high profile regulatory effort to curb the increasing risks and regulatory scrutiny of the AI industry.