CNBC's Megan Cassella joins 'Money Movers' to discuss the FTC launching an inquiry into AI chatbots acting as companions.

Washington

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

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The US Federal Trade Commission (FTC) has begun an inquiry into AI chatbots that function as companions, with a particular focus on their effects on children and teenagers. The FTC has requested information from seven companies—Alphabet, Character Technologies, Instagram, Meta, OpenAI, Snap, and XAI—regarding how they assess, test, and monitor potential negative impacts of their technologies.

This move is led by the FTC's Bureau of Consumer Protection and follows a high-profile lawsuit in California involving the alleged role of ChatGPT in a teen's suicide. The FTC is specifically interested in what actions companies are taking to mitigate risks and restrict access for young users. The investigation marks an early step in the FTC's efforts to address concerns about AI companions and youth safety.

FTC launches inquiry into AI chatbots acting as companions

Getting a news alert out of Washington, Megan Casella with the story. Megan. Sarah, good morning. We're just learning that the Federal Trade Commission is launching a new inquiry into AI chatbots that act as companions. They're asking seven companies to provide information into how their firms measure, test, and monitor potentially negative impacts of the technology specifically focused on children and teens, using them again as their companions. So the seven companies here that will be asked to provide information, it's Alphabet, Character Technologies, Instagram, Meta, OpenAI, Snap, and XAI, all being asked to provide some details here. And, Sarah, this is being led by the FTC's Bureau of Consumer Protection, and of course it comes after a very high-profile case out in California, where parents of a teen who this year died by suicide are suing OpenAI, saying that ChatGPT acted as his suicide coach. The FTC is saying in a new release that they're interested in particular on the impact of the chatbots on children and what actions companies might be taking to mitigate any potential negative impacts or to limit or restrict children and teens' use of these platforms. So more to come on this, guys, but we can see they're launching steps towards a new investigation. OK. Thank you very much. We'll continue to follow that and see where that goes. Megan Casella.

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FTC launches inquiry into AI chatbots acting as companions

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