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With creative workers across the board, including marketers, looking to a future of generative AI-powered content creation, some of the highest profile vendors of the disruptive technology are facing regulatory inspection and at least one lawsuit.
In April, OpenAI, creators of ChatGPT, made concessions to Italy’s data protection agency in an attempt to bring itself into compliance with GDPR. News broke today that it is facing similar inquiries from the Federal Trade Commission, the first signs of regulatory threats within the U.S.
FTC sends a 20-page letter. The agency has opened a probe into OpenAI and ChatGPT with a 20-page letter seeking the answers to many questions concerning the training of its large language models and use of personal data. The FTC aims to clarify whether OpenAI “engaged in unfair or deceptive privacy or data security practices or engaged in unfair or deceptive practices relating to risks of harm to consumers,” according to the letter.
Although these tools are novel, they are not exempt from existing rules, and the FTC will vigorously enforce the laws we are charged with administering, even in this new market.
FTC Chair Lina Khan in a recent op-ed.
Google faces lawsuit. As the market leader in the genAI space, OpenAI is bearing the brunt of regulatory scrutiny while its major competitors seem to fly under the radar. An exception is Google, which stands accused of illegally using copyrighted content and stealing the personal information of millions of Americans to train its AI products.
Read more here: https://martech.org/generative-ai-faces-more-legal-challenges/