The FTC is investigating companies that make AI companion chatbots

The Federal Trade Commission (FTC) is conducting a formal inquiry into companies that provide AI chatbots that can act as companions. The investigation aims to understand how these companies measure, test, and monitor the potential negative impacts of this technology on children and teens. Seven companies, including Alphabet, Character Technologies, Meta, OpenAI, Snap, and X.AI, have been asked to participate in the investigation. The FTC is seeking information on how the companies develop and approve AI characters, monetize user engagement, and protect underage users, particularly in relation to the Children's Online Privacy Protection Act Rule. The investigation appears to be a response to recent reports of chatbots amplifying suicidal ideation and engaging in sexually-themed discussions with underage users. The FTC commissioner suggests that if the facts indicate a violation of the law, the Commission should not hesitate to act to protect the vulnerable.