OpenAI is promising to roll out new safeguards for teens and people in emotional distress. CNBC’s MacKenzie Sigalos joins 'Money Movers' to discuss the new guardrails as the firm faces more legal pressure.

OpenAI has announced plans to introduce additional safety measures for its ChatGPT platform, particularly targeting teens and individuals experiencing emotional distress. These measures include parental controls that allow adults to link accounts, monitor conversations in real time, and receive alerts if the system detects signs of acute distress. The company is also routing sensitive conversations to a newer model designed to apply safety rules more consistently, addressing previous issues where safeguards failed during extended interactions.

This initiative comes as OpenAI faces legal pressure, including a recent wrongful death and product liability lawsuit. The broader industry is also under scrutiny, with other AI companies like Anthropic and Google facing lawsuits related to copyright and defamation. Unlike social media platforms, generative AI chatbots are not protected by Section 230, increasing their potential liability. The legal landscape remains uncertain, as many cases have settled without setting precedent, and regulatory focus has so far been more on supporting industry growth than on imposing strict controls.

OpenAI plans new safety measures amid legal pressure

OpenAI today promising to roll out some new safeguards for teens and people in emotional distress as high-profile cases raise the alarm over Chad GPT's potential safety issues. Mackenzie Sagalos has some details in today's Tech Check. Good morning, Mack. Hey, good morning, Carl. So OpenAI says that those safeguards are launching within the next few weeks, and they come as a response to claims that its chatbot has played a role in self-harm cases. Now, to start, it's launching parental controls that let adults link their accounts to their teens, monitor chats in real time, and get alerts when the system detects acute distress. Those conversations will be routed to a newer model that's trained to apply safety rules more consistently, a change that comes after OpenAI admitted that its guardrails break down during longer chats. And all of this follows a wrongful death and product liability lawsuit filed last week, the legal pressure only building across the industry. Rival Anthropic settled a copyright suit that could have exposed it to more than a trillion dollars in damages. Google is now facing a defamation case over AI overviews, and more lawsuits are already in the pipeline. Now, what OpenAI is doing is taking a page from Meta and Snap, which added parental controls only after teens were already on their platforms. But unlike social media, OAI and Anthropic don't have Section 230. It's the law that shields companies from liability when the content is user generated. But these Gen AI chatbots, they create their own responses, opening the door to direct liability for copyright, defamation, emotional harm, even wrongful death. There's also a brand trust problem. If chatGBT loses that perception of safety, it could crack the entire consumer story. And that matters with OpenAI chasing a $500 billion valuation. Because even though enterprise demand may drive the biggest deals, much of the private market hype around OpenAI and its peers is built on those mass consumer apps. Guys, there's also this question of how the courts are going to deal with these cases because there's just no precedent. Well, exactly. And so far we've seen a lot of these cases settle, which means that it's not setting a legal precedent here. And you've got the White House, which has been very supportive of the industry with David Sachs from out here in Silicon Valley, looking to kind of reduce the red tape for these AI companies. Those executive orders were much more so about building out energy infrastructure to support the industry rather than focusing on regulating it. Yeah. I mean, a lot of discussions about, for example, the kinds of extreme content you can get on anything like YouTube, which, but that's mostly about removing posts. This is much more complex given the way the algo works to provide, you know, AI reasoning. And that's why you've almost seen something like two camps emerge here. So Google and Apple may be being seen as being a bit more thoughtful, slower to progress on this front versus an OpenAI, which was first out the gate. It had that first mover's advantage when it launched ChatGBT in November 2022. But Google, you know, came out five months after that. And with its model, they've had years of experience with kind of navigating the more risky search queries. So I think that they had a better sense of what they were up against with respect to product liability. So there is that risk that comes with first mover's advantage. Yeah. Mac, it's a, it's a tough story, a serious one that we'll monitor with your help. Mackenzie Segalos.

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