The U.S. Federal Trade Commission said it is issuing orders to seven companies seeking information on how these firms measure, test, and monitor potentially negative impacts of AI chatbots on children and teens.
The companies are Microsoft (NASDAQ:MSFT)-backed OpenAI, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), including Meta’s social media platform Instagram, xAI — owned by (NASDAQ:TSLA) CEO Elon Musk — Snap (NYSE:SNAP), and Character Technologies.
The regulator said AI chatbots may use generative AI technology to simulate human-like communication and interpersonal relationships with users. The AI chatbots can effectively mimic human characteristics and are generally designed to communicate like a friend or confidant, which may prompt some users, especially children and teens, to trust and form relationships with chatbots.
“The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children,” said FTC Chairman Andrew Ferguson. “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.”
As part of its inquiry, the FTC is seeking information about how the companies: monetize user engagement; process user inputs and generate outputs in response to user inquiries; develop and approve characters; measure, test, and monitor for negative impacts before and after deployment; and mitigate negative impacts, particularly to children.
In addition, the FTC is seeking information on companies employ disclosures, advertising, and other representations to inform users and parents about features, the intended audience, potential negative impacts, and data collection and handling practices; monitor and enforce compliance with company rules and terms of services (such as community guidelines and age restrictions); and use or share personal information received via users’ conversations with the chatbots.
Meta said it did not have any comment on the matter in an email to Seeking Alpha. However, the company directed Seeking Alpha to an August report in which it said it was set to add new controls and safeguards to its AI chatbot.
Last month, Reuters reported that an internal Meta document on policies about chatbot behavior allowed the company’s AI services to “engage a child in conversations that were romantic or sensual.”
Alphabet, Character Technologies, OpenAI, Snap and x.AI did not immediately respond to a request for comment from Seeking Alpha.