US regulator launches inquiry into ChatGPT to check data mishandling

The US Federal Trade Commission (FTC) has initiated an investigation into OpenAI, the company behind the popular ChatGPT app. The investigation aims to determine whether the app generates false information that harms consumers and whether it mishandles user data.

OpenAI, which is backed by Microsoft, received a 20-page questionnaire from the FTC outlining these concerns.

The questionnaire specifically requests information about incidents where users were falsely disparaged and asks OpenAI to share any steps taken to prevent such occurrences in the future.

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FTC Chair expresses concerns

During a congressional committee hearing, FTC Chair Lina Khan acknowledged concerns related to ChatGPT's potential for libelous output.

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Although she did not explicitly mention the investigation, Khan stated that the agency had received reports of sensitive information being disclosed in response to inquiries, as well as instances of libel and defamatory statements.

"We've heard about libel, defamatory statements, flatly untrue things that are emerging. That's the type of fraud and deception that we are concerned about," she said.

The FTC is primarily focused on understanding how these issues could harm users but are also exploring OpenAI's utilisation of private data to develop its industry-leading language model.

Possible outcomes of the investigation

An FTC investigation does not automatically lead to further action, and the case can be closed if the company under scrutiny adequately addresses the agency's concerns.

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However, if the FTC identifies illegal or unsafe practices, it can demand remedial actions and potentially initiate legal proceedings against OpenAI.

Both OpenAI and the FTC have not provided any comments regarding the investigation in response to requests for information, reported AFP.

Concerns arising from ChatGPT's capabilities

As an AI language model, ChatGPT has a wide range of impressive capabilities and its release in November drew significant attention.

LLMs, a type of generative AI, can produce human-like content within seconds.

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While the technology garnered admiration, reports also surfaced about the models generating offensive, false, or nonsensical content, sometimes referred to as "hallucinations," reported AFP news agency.

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