In an eyebrow-raising display of regulatory bravado, the Federal Trade Commission (FTC) is now playing detective with OpenAI’s chatbot, ChatGPT. Apparently, the FTC suspects this AI tool of engaging in deceptive practices, generating erroneous information that could harm consumers. This is a bit rich, considering OpenAI has been up front about potential flaws, even including a warning label about the possibility of false or misleading info. But hey, who reads those, right?

OpenAI’s CEO, Sam Altman, tweeted a confident response:”it’s super important to us that out [sic] technology is safe and pro-consumer, and we are confident we follow the law.”

FTC’s Chair, Lina Khan, boldly declared that AI is not above consumer protection laws: “There is no AI exemption to the laws on the books.” Despite OpenAI’s built-in limitations and explicit disclaimers, the FCC is treating them like deceptive merchants now. Interesting times!

Critics argue the FTC’s actions could stifle innovation. Will Rinehart from Utah’s Center for Growth and Opportunity calls it a “shakedown.” On the surface, that’s exactly what this looks like.

While I appreciate that there are “big feelings” on both sides of this issue, a dash of common sense wouldn’t hurt when attempting to regulate AI. Maybe the FCC should start by reading the warning labels.

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