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US Regulators Investigate OpenAI Amid Hollywood Writer Strike

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Written by
Martin Young

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Edited by
Kyle Baird

14 July 2023 04:12 UTC
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  • The Federal Trade Commission (FTC) is investigating potential risks posed by AI, specifically focusing on OpenAI's ChatGPT.
  • OpenAI, backed by Microsoft, is under scrutiny for possibly creating false information and engaging in deceptive data practices.
  • Amidst rising tensions over AI's influence, Hollywood screenwriters have gone on strike, protesting against AI-powered production processes.
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US regulators are investigating the risks posed by artificial intelligence (AI) after the Federal Trade Commission launched a probe into ChatGPT maker OpenAI. Meanwhile, Hollywood writers have gone on strike in protest against the emerging technology. 

On July 13, the Federal Trade Commission sent a letter to Microsoft-backed OpenAI. It stated that it was investigating the popular AI chatbot, ChatGPT.

Artificial Intelligence Regulations Take Center Stage Spotlight 

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The regulator wants to know if the chatbot has created false information about people or engaged in “unfair or deceptive” privacy and data security practices, according to the Financial Times

In May, the FTC fired a warning shot at the artificial intelligence industry, saying it was:

“Focusing intensely on how companies may choose to use AI technology, including new generative AI tools, in ways that can have actual and substantial impact on consumers.”

In its latest request, the regulator asked OpenAI to share internal material. Furthermore, it wants details on how the firm retains user information. It also wants to know how the firm handles “false, misleading, or disparaging” content produced by the AI language model.

FTC chair Lina Khan said she was concerned about “reports where people’s sensitive information is showing up in response to an inquiry from somebody else.”

OpenAI chief executive Sam Altman took to Twitter on July 14, stating

“It is very disappointing to see the FTC’s request start with a leak and does not help build trust. That said, it’s super important to us that our technology is safe and pro-consumer, and we are confident we follow the law. Of course, we will work with the FTC.”

OpenAI was sued last month for allegedly collecting and harvesting personal information. 

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In related news, Hollywood screenwriters have gone on strike. Their concerns are over escalating tensions regarding the influence of an AI-powered production process on their livelihoods. 

On July 14, the world’s largest labor union representing performers and broadcasters, SAG-AFTRA, tweeted that it supported and was joining the strike.

Picket lines have formed outside Los Angeles film studios. AI critics said that studio executives simply want to replace “unionized artists with compliant robots,” according to reports.  

Other AI News 

In an effort to compete with OpenAI and Google, Meta is preparing to launch its own AI for commercial projects.

The firm formerly known as Facebook is set to launch its own commercial large language model (LLM) AI platform.

Meta’s LLaMA artificial intelligence platform will be available for corporate users to customize. However, the firm is known for its epic failures, including a defunct cryptocurrency and its metaverse project

Meanwhile, Bitcoin mining giant Hive rebranded this week as it shifted its focus to AI and cloud computing. 

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