FTC probes OpenAI, generative AI companies misusing information on radar

The Federal Trade Commission has launched an investigation into Sam Altman's OpenAI, the creator of DALL-E and ChatGPT on Thursday, Washington Post reported. The finding was based on a document that the Washington Post claimed to have reviewed.

Reports reveal that the American Regulators have requested documents showing how the company tackles risks that emerge out of the large language AI models in the market. The FTC is also concerned about how the company takes account of the consumer protection laws, as it alleges that OpenAI has violated the policies through unfair and deceptive practices which could eventually harm the privacy and security of users.

"Companies must confront significant challenges, including managing the risks associated with generative AI and fundamentally re-evaluating core business," Vikram Ahuja, MD, ANSR told Republic.

"Excitement surrounding generative AI is justified. However, unlocking the full benefits will require patience and concerted efforts from businesses," Ahuja added.

OpenAI on surveillance

The company has also been asked by the FTC for information linked to a bug in its generative AI tool called ChatGPT. The bug is supposed to have leaked sensitive user data including payments and chat histories. This has been marked as poor security practice by the company, whereas OpenAI has revealed that the number of affected users is very minimal. 

The FTC further sought details of the complaints that allege that the company made false or malicious statements about individuals. The FTC had previously cited concerns about the usage of Generative AI that could do more harm to customers than good last month, according to media reports.

The technology could be used as a shield to initiate scams, misleading marketing operations and can lead to discriminatory advertising. OpenAI chief Sam Altman testified before the Senate in May when he defended his part by highlighting the privacy and safety measures adopted by the company.

Google, Meta and OpenAI face issues: Personal data misuse remains an issue

A common factor among all these suits is that the information has been taken without consent | Image Credit: Pixabay

According to experts, AI companies have emerged as compelling forces in the contemporary landscape, driven by remarkable technological advancements, disruptive potential, and the vast reservoirs of data available today. This week itself, major tech giants like Google and Meta have been hit with various lawsuits in the US.

The allegations came from prominent authors and writers alleging Generative AI copyright infringement. These issues have also technically resulted in the declining traffic and popularity of users relying on these tools. 

Major concerns have been the usage of data training for large language models and other AI algorithms. The data consumed by the companies is sourced from different shadow websites that are illegal and process information without consent.

In addition to this, allegations point to the stealing of information, particularly the digital footprints available on the internet. Regulators have, however, directed all companies operating to understand that the publicly available data has never been free to use.

The common factor among all these suits is that all the information has been taken without consent. This information also includes copyrighted work, personal information and data. All companies have been accused of stealing information for the potential training of Generative AI tools in the market.