FTC launches inquiry into AI chatbots acting as companions

The Federal Trade Commission is issuing orders to seven companies that provide consumer-facing AI-powered chatbots seeking information on how these firms measure, test, and monitor potentially negative impacts of this technology on children and teens. The FTC inquiry seeks to understand what steps, if any, companies have taken to evaluate the safety of their chatbots when acting as companions, to limit the products’ use by and potential negative effects on children and teens, and to apprise users and parents of the risks associated with the products. “Protecting kids online is a top priority for the Trump-Vance FTC, and so is fostering innovation in critical sectors of our economy,” said FTC Chairman Andrew N. Ferguson. The FTC’s order targets Alphabet (GOOG) (GOOGL), Instagram, Meta Platform (META), OpenAI, Snap (SNAP), xAI, and Character Technologies. The FTC is interested in particular on the impact of these chatbots on children and what actions companies are taking to mitigate potential negative impacts, limit or restrict children’s or teens’ use of these platforms, or comply with the Children’s Online Privacy Protection Act Rule.