The FTC Has OpenAI in Its Crosshairs With Investigations into User Data
Key takeaways
- The FTC is investigating OpenAI about concerns over its handling of user data
- CEO Sam Altman said the move “does not build trust”
- Only the EU has any legislation in place to regulate AI at present
OpenAI is officially on the FTC’s radar as the regulatory body looks into how the AI company handles user data and what steps it takes when its AI models, such as the wildly popular ChatGPT, give out wrong information. It could be the start of AI regulation in the US — we’ve got the latest below.
AI has led the charge this year on the stock market. Your portfolio can get involved in the action with Q.ai’s Emerging Tech Kit, which harnesses the power of AI to work through the weekly data, predict the upside on tech stocks and ETFs and readjust the Kit’s holdings as required.
Download Q.ai today for access to AI-powered investment strategies.
What’s happened with the FTC and OpenAI?
The Federal Trade Commission (FTC) has opened an investigation into how OpenAI, creator of the ChatGPT AI chatbot, handles its users’ sensitive information.
The Washington Post, which first reported on the story, published the FTC’s letter where the regulatory body confirmed OpenAI was being investigated to determine if it’s “engaged in unfair or deceptive privacy or data security practices”. In short — they want to know if there have been any dodgy dealings with user data.
OpenAI founder, Sam Altman, tweeted that “of course [OpenAI] will work with the FTC” but that the move, which Altman alleges came from a leak, “does not build trust”.
The investigation is the latest in a growing list of litigation OpenAI is involved in. Comedian Sarah Silverman and two other authors have sued the AI company and Meta for allegedly illegally training their AI models on copyrighted work.
Will AI be regulated?
AI regulation seems to be a matter of when and not if. The European Union was the first out the door with formal legislation in the form of its Artificial Intelligence Act, which outlines different rules for different risk levels.
As for the U.S., there’s been one congressional hearing already — which Sam Altman attended, along with other experts — and a few more closed-session hearings for lawmakers to attend so they can decide what to do. But in terms of concrete AI legislation from the U.S., nothing is in the pipeline yet.
The bottom line
A company with such runaway success would always have a target on its back. Hopefully, OpenAI and the FTC can reach a middle ground — but this is another reminder that regulation in the burgeoning industry is desperately needed to avoid lengthy legal battles.
OpenAI is just one name in the race to develop AI — and opportunities abound for the savvy investor, which you can harness with Q.ai’s Emerging Tech Kit. This clever tool uses AI to sift through the week’s data, spot where the tech stocks and ETFs are heating up, and tweak the Kit’s holdings as needed.
Download Q.ai today for access to AI-powered investment strategies.
