The Federal Trade Commission (FTC) has asked OpenAI, a company funded by Microsoft, for information on its procedures for mitigating potential hazards to people’s reputations.

The request is a reflection of increased regulatory focus on this technology. OpenAI has declared its willingness to work with the FTC.

Unlike the list of links generally returned by traditional internet searches, OpenAI’s ChatGPT can respond to user inputs in a highly realistic human-like manner in just seconds. It is anticipated that such AI technologies would fundamentally alter the ways in which individuals find information online.

Contested debates start to develop as technology companies race to release their versions of this revolutionary system. These discussions cover issues including the data used, the accuracy of the answers, and if the company violates authorship rights while developing the system.

The FTC raises concerns in its letter regarding the steps taken by OpenAI to address the risk that its products “fabricate statements about actual individuals that could be false, misleading, or harmful.“

The FTC is also evaluating OpenAI’s data privacy regulations and the techniques employed to collect data in order to train and improve the AI.

Over the years, OpenAI has worked to assure the safety of its products. A lot of time was spent on ChatGPT’s refinement to improve safety and alignment before the product was released. The company places a strong emphasis on user privacy protection and the architecture of its systems to learn more about the entire world than specific users.

The company also asserts confidence in their adherence to the law and insists that the safety and pro-consumer features of their technology are of utmost importance. They have re-iterated their dedication to working with the FTC.

In a recent congressional hearing testimony, the CEO of OpenAI acknowledged the potential for technological failures. He suggested a new organization to oversee AI safety and asked for the creation of laws for this emerging sector. As the technology’s applications become clear, the CEO anticipates a significant impact, including job upheaval.

The Washington Post broke the news of the FTC inquiry first. However, when contacted by BBC, OpenAI declined to comment.

Additionally, the FTC has chosen not to comment on the probe. Under its current chair, Lina Khan, the consumer watchdog has been vigorously monitoring digital titans. Khan rose to fame as a Yale law student by criticizing the nation’s record of anti-monopoly regulation, particularly with regard to Amazon.

Following her controversial appointment as chair by President Joe Biden, Khan has drawn fire for allegedly expanding the FTC’s scope of authority. She attempted to stop the Microsoft and Activision Blizzard merger, one of her well-known campaigns against tech companies, but it was unsuccessful.

She voiced her concerns regarding the output of OpenAI’s product, noting instances of sensitive information appearing in response to unrelated requests and the development of defamatory or plainly false claims, despite receiving criticism throughout a five-hour Congress hearing.

The FTC investigation is not the first time that OpenAI has come under regulatory scrutiny. Due to privacy concerns, the Italian authorities had in April blocked ChatGPT. However, once OpenAI provided extra information about its privacy practices and introduced age verification mechanisms for users, the service was allowed to resume.