FTC launches probe into AI chatbot companions from OpenAI, Meta, and others
The move comes amid growing controversy over AI companion chatbots, which have been linked to harmful outcomes for vulnerable users.
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The U.S. Federal Trade Commission (FTC) announced on Thursday that it has opened a sweeping inquiry into seven major technology companies - Alphabet, Character.AI, Instagram, Meta, OpenAI, Snap, and Elon Musk's xAI - over their use of AI chatbot companion products for minors, as per media reports.
The investigation will examine how these firms design, monetize, and safeguard their AI chatbots, particularly when used by children and teens. Regulators will also assess whether parents are adequately informed about the risks posed by such technologies.
The move comes amid growing controversy over AI companion chatbots, which have been linked to harmful outcomes for vulnerable users.
Both OpenAI and Character.AI are currently facing lawsuits after families alleged that chatbot interactions contributed to their children's suicides.
OpenAI admitted in a blog post that its systems were more reliable in short conversations but could falter during longer interactions. "Our safeguards work more reliably in common, short exchanges. We have learned over time that these safeguards can sometimes be less reliable in long interactions," reports suggest.
Meta has also been criticized for its lax standards. Internal documents revealed that the company once permitted its AI chatbots to engage in "romantic or sensual" conversations with children, a policy that was only scrapped after Reuters reporters raised concerns.
The risks extend beyond children. In a widely reported incident, a 76-year-old man with cognitive impairments developed a romantic attachment to a chatbot modelled after Kendall Jenner. Misled into believing he could meet the "real" person in New York City, he sustained fatal injuries after falling on his way to the train station.
As per reports, mental health experts warn of a growing phenomenon of "AI-related psychosis," where users become convinced their chatbot companions are conscious beings. With many large language models programmed to flatter and indulge users, such delusions can escalate into dangerous behaviours.
FTC Chairman Andrew N. Ferguson underscored the dual challenge of balancing innovation with safety. "As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry,” Ferguson reportedly said in a statement.
