FTC Probes AI Chatbots from Alphabet, Meta, OpenAI and Others
The U.S. Federal Trade Commission (FTC) announced on Thursday that it has launched an inquiry into major providers of AI-powered consumer chatbots, including Alphabet (Google), Meta Platforms, OpenAI, Character.AI, Snap, and xAI.
Focus of the Inquiry
The FTC is demanding details on:
-
How chatbots are tested, measured, and monitored for potential negative impacts.
-
Monetization strategies, including how companies profit from user engagement.
-
Processing of user inputs and the generation of responses.
-
Use of conversation data, and whether it is exploited for advertising, training, or other commercial purposes.
Rising Scrutiny
Generative AI tools have recently drawn criticism following safety scandals:
-
Reuters revealed internal Meta policies that allowed chatbots to engage in romantic conversations with children.
-
OpenAI is facing a lawsuit alleging ChatGPT contributed to a teenager’s suicide.
-
Character.AI is under a separate lawsuit tied to another teen death.
Company Responses
-
Character.AI: said it will cooperate, highlighting new safety features rolled out over the past year.
-
Snap: welcomed the FTC’s focus, saying it supports policies that balance innovation with community protection.
-
Meta: declined to comment.
-
Alphabet, OpenAI, xAI: did not immediately respond.
Bigger Picture
The inquiry reflects Washington’s growing concern over AI risks, especially for children and vulnerable users. Regulators are looking to balance innovation with consumer protection, while lawsuits and scandals raise urgency for stricter oversight.
