What data privacy concerns does the FTC have with OpenAI?

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The US Federal Trade Commission is investigating OpenAI over concerns that its technology mishandles user data and generates false information.

The US Federal Trade Commission (FTC) is actively investigating OpenAI, the creator of ChatGPT, focusing on potential consumer harm stemming from the AI model's output and its handling of user data. FTC chair Lina Khan has specifically voiced concerns that sensitive personal information could be inadvertently revealed to unintended recipients.
Concerns Regarding Sensitive Information Disclosure

FTC chair Lina Khan has highlighted reports indicating that individuals' private data has surfaced in responses to inquiries made by others. This raises a significant privacy issue, as it suggests that information intended to be confidential could be exposed through the AI's generation process. The investigation aims to understand the extent to which such disclosures occur and the underlying mechanisms that permit them.
Potential for Libel and Defamation

Beyond data privacy, the FTC's scrutiny also encompasses the AI's propensity to generate false, defamatory, or libellous statements. Khan indicated that the agency is concerned about instances where untrue information is presented as fact, which could lead to reputational damage or other forms of harm to individuals or entities. The investigation seeks to ascertain if these outputs constitute deceptive or fraudulent practices.
Use of Private Data in Model Training

The FTC's inquiry also delves into OpenAI's methods for utilising private data in the development of its foundational large language models (LLMs). While the specifics of the data types and their precise usage are not detailed in the provided information, the investigation implies a focus on whether the collection and application of this private data adhere to regulatory standards and consumer protection principles. The company's GPT-4 model, which powers ChatGPT, is central to this aspect of the probe.

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What data privacy concerns does the FTC have with OpenAI?

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