FTC launches inquiry into AI chatbots of Alphabet, Meta and others

THE US Federal Trade Commission on Thursday said it is seeking information from several companies including Alphabet, Meta Platforms and OpenAI that provide consumer-facing AI-powered chatbots, on how these firms measure, test and monitor potentially negative impacts of the technology.

The FTC wants to know how those companies and Character.AI, Snap and xAI monetise user engagement, process user inputs and generate outputs in response to user inquiries and use the information obtained through conversations with the chatbots.

Generative AI companies have been under scrutiny in recent weeks, after Reuters reported on internal Meta policies that permitted chatbots to have romantic conversations with children, and a family sued OpenAI for ChatGPT’s role in a teen’s suicide.

A Character.AI spokesperson said the company looks forward to “providing insight on the consumer AI industry and the space’s rapidly evolving technology,” adding it has rolled out many safety features in the last year.

The company faces a separate lawsuit over another teen’s death by suicide. A Snap spokesperson said, “we share the FTC’s focus on ensuring the thoughtful development of generative AI, and look forward to working with the Commission on AI policy that bolsters U.S. innovation while protecting our community.”

A spokesperson for Meta declined to comment. The other companies did not immediately respond to Reuters’ requests for comment. REUTERS