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Is OpenAI mishandling your data? The FTC intends to find out

This FTC investigation could potentially change everything for the AI industry – setting precedents for regulation of AI-generated content for years to come.

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Image: KnowTechie

The Federal Trade Commission (FTC) is now turning its all-seeing eye toward OpenAI’s chatbot, ChatGPT. This comes on the heels of reports that our AI friend has been spewing “hallucinations,” or as we like to call it in the real world – lies.

GPT-3, known for its impressive ability to generate text so human-like that it could be mistaken for the work of a best-selling author, has recently found itself in trouble, reports the Washington Post.

It seems our AI pal has been caught whispering information that’s about as grounded in reality as a unicorn on a hoverboard. These hallucinations can be anything from slight inaccuracies to full-blown misrepresentations of facts.

In an age where misinformation spreads faster than wildfire, this raises more red flags than a bullfighting convention.

Hallucinations are just the tip of the iceberg

As if that wasn’t bad enough, the company is being grilled for how it handles its users’ data. According to The Post, The FTC has ordered OpenAI to provide details on the collection of data used to train its language models.

OpenAI must also explain how it protects personal information from being included in these datasets.

Violations could result in fines and the implementation of strict data-management practices, similar to what other tech companies have faced in the past.

The timing was inevetible

Introducing chatgpt-plus
Image: KnowTechie

The FTC’s investigation couldn’t have come at a weirder time. With AI technologies becoming as commonplace as smartphones and smart-ass assistants (looking at you, Siri), the accuracy of the information these systems provide is critical.

The FTC getting involved highlights how seriously they’re taking the potential impact of AI on society and shows their commitment to ensuring its responsible use through regulatory oversight.

OpenAI isn’t just sitting around twiddling their thumbs either. They’ve acknowledged GPT-3’s hallucination issue and are actively working on improvements. They’re also pledging transparency and cooperation with the FTC’s investigation – which is always nice to see.

If Facebook can walk away from an FTC investigation scratch free, this this should be a walk in the park for OpenAI

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Image: KnowTechie

This investigation could potentially change the game for the AI industry – setting precedents for regulation of AI-generated content and laying down future guidelines for accountability and transparency.

As we continue integrating AI technologies into our lives, finding that sweet spot between leveraging their benefits while keeping risks under control is crucial. This investigation serves as an important reminder that achieving this balance still presents challenges.

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Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at or find him on Mastodon or Post.

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