The
reported move marks the strongest regulatory threat to the
Microsoft-backed startup that kicked off the frenzy in
generative artificial intelligence, enthralling consumers and
businesses while raising concerns about its potential risks.
The FTC this week sent a 20-page demand for records about how
OpenAI addresses risks related to its AI models, the Post said,
citing a document. The agency is investigating whether the
company engaged in unfair or deceptive practices that resulted
in "reputational harm" to consumers, the newspaper added.
The FTC and OpenAI did not immediately respond to Reuters'
requests for comment.
As the race to develop more powerful AI services accelerates,
regulatory scrutiny is growing of the technology that could
upend the way societies and businesses operate.
Global regulators are aiming to apply existing rules covering
everything from copyright and data privacy to two key issues:
the data fed into models and the content they produce, Reuters
reported in May.
In the United States, Senate Majority Chuck Schumer has called
for "comprehensive legislation" to advance and ensure safeguards
on AI and will hold a series of forums later this year.
OpenAI had in March also run into trouble in Italy, where the
regulator had ChatGPT taken offline over accusations that OpenAI
violated the European Union's GDPR - a wide-ranging privacy
regime enacted in 2018.
ChatGPT was reinstated later after the U.S. company agreed to
install age verification features and let European users block
their information from being used to train the AI model.
(Reporting by Mrinmay Dey and Samrhitha Arunasalam in Bengaluru;
Editing by Nivedita Bhattacharjee and Maju Samuel)
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