FTC prepares to grill AI companies over impact on children, WSJ reports
FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
The U.S. Federal Trade Commission is preparing to scrutinize the mental health risks of AI chatbots to children and will demand internal documents from major tech firms, including OpenAI, Meta Platforms and Character.AI, the Wall Street Journal reported on Thursday.
The agency is preparing letters to send to the companies operating popular chatbots, the report said, quoting administration officials.
"Character.AI has not received a letter about the FTC study, but we welcome working with regulators and lawmakers as they begin to consider legislation for this emerging space," the company said.
FTC, OpenAI and Meta did not immediately respond to Reuters requests for comments. Reuters could not independently verify the report.
FTC and the entire Administration are focused on delivering on Trump's mandate "to cement America's dominance in AI, cryptocurrency, and other cutting-edge technologies of the future" without compromising the safety and well-being of the people, a White House spokesperson said.
The news comes weeks after a Reuters exclusive report revealed how Meta allowed provocative chatbot behavior with children, including letting bots engage in "conversations that are romantic or sensual."
Last week, the social media company said it would add new teenager safeguards to its artificial intelligence products by training systems to avoid flirty conversations and discussions of self-harm or suicide with minors, and by temporarily limiting their access to certain AI characters.
In June, more than 20 consumer advocacy groups filed a complaint with the FTC and state attorneys general, alleging that AI platforms such as Meta AI Studio and Character.AI enable the unlicensed practice of medicine by hosting "therapy bots".
Texas Attorney General Ken Paxton launched an investigation into Meta and Character.AI last month for allegedly misleading children with AI-generated mental health services, accusing them of deceptive trade practices and privacy violations.
