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FTC Launches Investigation of OpenAI’s ChatGPT over Publishing False Information About Americans

The FTC has initiated an investigation into OpenAI’s popular AI chatbot, ChatGPT, over allegations of causing harm by publishing false information about individuals along with potential data security issues.

The Wall Street Journal reports that due to allegations of publishing false information about users and potential data security issues, the FTC has opened an investigation into OpenAI’s ChatGPT AI system.

The FTC’s probe into ChatGPT, a widely popular AI system known for its ability to generate human-like text outputs, could pose a significant legal challenge for the company. The investigation was confirmed by a source familiar with the matter, who revealed that the FTC had sent a letter to OpenAI outlining its concerns and posing several questions.

According to a letter the agency sent to the company, the FTC is looking into whether ChatGPT has harmed people by disseminating false information about them. This investigation comes as part of the FTC’s broad authority to police unfair and deceptive business practices, under the leadership of Chair Lina Khan.

Breitbart News previously reported that OpenAI faces a defamation lawsuit filed by a radio host that faced false accusation generated by the AI system.

The Verge reports that OpenAI, the company behind ChatGPT, is being sued for defamation as a result of false information produced by its AI system. Georgia-based radio host Mark Walters has filed a lawsuit against the company after ChatGPT falsely accused him of defrauding and embezzling money from a non-profit organization.

The first of its kind lawsuit, which was submitted on June 5 in Georgia’s Superior Court of Gwinnett County, highlights the growing problem of AI systems producing false information/ AI chatbots like ChatGPT have been known to make up dates, facts, and figures, called “hallucinating” in the industry, which has prompted numerous complaints.

In addition to the potential spread of false information, the FTC’s letter also raised questions about OpenAI’s data-security practices. The agency cited a 2020 incident in which the company disclosed a bug that allowed users to see information about other users’ chats and some payment-related information. Breitbart News has also reported on hackers accessing ChatGPT accounts to learn the potentially sensitive prompts users have entered.

The FTC’s letter, known as a civil investigative demand, poses dozens of questions. Other subjects covered include the business’s marketing initiatives, its methods for teaching AI models, and its management of user data.

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