Breaking: US FTC Probing ChatGPT Over False Information

Anvesh Reddy
July 13, 2023 Updated July 16, 2024
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ChatGPT FTC probe news

Crypto Market News: The United States Federal Trade Commission (FTC) had reportedly sent a letter to OpenAI, the company behind the highly popular artificial intelligence based chatbot ChatGPT, over claims that the system published fake information. The agency claims that the company might have potentially violated consumer protection laws with the publishing of inaccurate data, according to latest reports. This marks the first ever major regulatory scrutiny on the artificial intelligence based tech products, at a time when industry giants like Microsoft, Google and Amazon are competing for the next big thing in the AI space.

Also Read: Elon Musk’s X.AI Shoots An Unrelated Token’s Price By 780%; Crypto AI Tokens Also Up

FTC Writes To OpenAI On Probe

According to a Wall Street Journal report, the commission is probing whether or not ChatGPT violated laws by publishing false information. This was communicated to the company via a letter the FTC sent, the report said. The FTC has sent a lengthy document asking OpenAI for the measures it took to mitigate risks around the AI models. At the core of the investigation is the question of whether or not the ChatGPT published data cause damage to its customers’ reputation.

Earlier, a group of industry experts including billionaire Elon Musk, called for a halt in AI development, although he later admitted that it will not materialize into a halt. In a recent, Musk said even China was willing to work shoulder to shoulder with international forums in deciding on an AI regulatory framework. He also warned that the technology is potentially dangerous on a civilizational level, and that the governments should approach this with an ‘Insight and Oversight’ policy, meaning that the lawmakers should first understand how AI works and then regulate the industry.

Also Read: Alex Mashinsky Arrested As US SEC, DOJ, CFTC And FTC Filed Lawsuits Against Celsius Network

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.