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ChatGPT creator OpenAI accused of breaking Federal Trade Law

ChatGPT creator OpenAI accused of breaking Federal Trade Law

The Center for AI and Digital Policy sent a formal complaint to the Department of Justice in the United States. The Federal Trade Commission has accused OpenAI, the company that made the very popular ChatGPT, of breaking Section 5 of the FTC Act, which says that people can’t do things that are unfair or deceptive.

The FTC responsibility

“The FTC has a clear responsibility to investigate and prohibit unfair and deceptive trade practices,” the center’s founder and president, Marc Rotenberg, said. “We believe that the FTC should look closely at OpenAI and GPT-4.”

Not by chance, the FTC changed the law last month to include language aimed at people who make apps like OpenAI that use artificial intelligence. The government told developers not to lie about the abilities of their products, make false claims about how well they work, or say that their products are better than non-AI products without proof.

The Michael Dukakis Institute for Leadership and Innovation, which was started by the former Massachusetts governor and failed Democratic U.S. presidential candidate and is now a Washington, DC-based non-profit, opened the Center for AI and Digital Policy in 2020.

The FTC warnings on AI

The FTC also told developers that they should look into possible risks and effects before going live.

“You need to know about the reasonably foreseeable risks and impact of your AI product before putting it on the market,” the agency wrote. “If something goes wrong—maybe it fails or yields biased results—you can’t just blame a third-party developer of the technology. And you can’t say you’re not responsible because that technology is a ‘black box’ you can’t understand or didn’t know how to test.”

Since 2017, the FTC has issued warnings about how to use new technologies like artificial intelligence and blockchain in the wrong way. These technologies are becoming more popular and accepted.

Many people are upset that OpenAI is becoming more dominant in the field, especially since GPT-4, the latest version of ChatGPT, was almost immediately adopted. The Center for AI and Digital Policy has asked the FTC to look into OpenAI to see if the company has followed FTC rules.

The Center’s lawsuit against the FTC comes just a few days after Elon Musk, CEO of both Tesla and Twitter, and other high-profile tech leaders signed an open letter calling for an end to the development of AI systems like OpenAI’s GPT-4 platform.

“We call on all AI labs to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4. This pause should be public and verifiable, and include all key actors,” the letter said. “If such a pause cannot be enacted quickly, governments should step in and institute a moratorium.”

The Center for Artificial Intelligence and Digital Policy is not the only group calling for investigations into the rapid growth of AI and the need for laws. On Thursday, the United Nations Educational, Scientific, and Cultural Organization (UNESCO) also called for a “Global Ethical Framework.”

The 193 Member States of UNESCO’s General Conference decided in November 2021 to approve the Recommendation on the Ethics of Artificial Intelligence, which sets a global standard for AI ethics. This framework aims to protect and develop human rights and dignity while also serving as an ethical guide and foundation for supporting the rule of law in the digital sphere.

“The world needs stronger ethical rules for artificial intelligence: this is the challenge of our time,” said Audrey Azoulay, the head of UNESCO.

Content Source: decrypt

About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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