FTC probes OpenAI, Alphabet, Meta, xAI and Snap over AI chatbot risks for children

New Delhi: The US Federal Trade Commission (FTC) has launched an inquiry into how artificial intelligence chatbots may affect children and teenagers, issuing orders to seven companies including OpenAI, Alphabet, Meta, xAI and Snap, according to the report.

The agency said it is seeking to understand how these chatbots, which simulate human-like communication and interpersonal relationships, may have potentially negative effects on young users. It added that it is particularly interested in how firms “evaluate the safety of these chatbots when acting as companions.”

“Protecting kids online is a top priority for the Trump-Vance FTC, and so is fostering innovation in critical sectors of our economy,” FTC Chairman Andrew Ferguson said in a statement.

The FTC is gathering information on a wide range of practices, including how companies monetise user engagement, develop and approve characters, use or share personal data, monitor compliance with company policies and mitigate potential harms.

OpenAI responded to the announcement, with a spokesperson telling CNBC, “Our priority is making ChatGPT helpful and safe for everyone, and we know safety matters above all else when young people are involved. We recognise the FTC has open questions and concerns, and we’re committed to engaging constructively and responding to them directly.”

Snap said in its statement, “We share the FTC’s focus on ensuring the thoughtful development of generative AI, and look forward to working with the Commission on AI policy that bolsters US innovation while protecting our community.”

Character Technologies, which operates the Character.AI bot, was also named in the FTC’s release, alongside Instagram, owned by Meta. A spokesperson for Character.AI said, “We look forward to collaborating with the FTC on this inquiry and providing insight on the consumer AI industry and the space’s rapidly evolving technology.”

Elon Musk announced in July a “Companions” feature for subscribers to xAI’s Grok chatbot app, while Meta’s Mark Zuckerberg said earlier this year that people will increasingly want “personalised AI that understands them.”

The FTC’s orders follow mounting political scrutiny. Last month, Senator Josh Hawley of Missouri announced an investigation into Meta after a Reuters report alleged that its AI chatbots could engage in romantic and sensual conversations with children. Following the Reuters report, Meta made temporary changes to restrict chatbots from discussing issues such as self-harm, eating disorders or inappropriate romantic interactions.

OpenAI has also outlined new measures to handle “sensitive situations,” after a lawsuit filed by a family alleged that ChatGPT contributed to their teenage son’s death by suicide.