FTC Launches Inquiry into AI Chatbots from Seven Tech Firms

The Federal Trade Commission (FTC) has launched an inquiry into seven major tech companies, including Alphabet, Meta, OpenAI, Snap, and Elon Musk's xAI, regarding the safety of their AI-powered chatbots for children and teens. The FTC is particularly concerned about these chatbots acting as companions, which mimic human-like communication and may lead young users to form trusting relationships, raising potential risks of emotional harm and exploitation. The agency is seeking detailed information on how these companies assess, monitor, and mitigate such harms, limit access for minors, and communicate risks to both users and parents, under its 6(b) authority. This inquiry reflects broader anxieties about AI chatbots' impact on youth, amid lawsuits alleging involvement in severe harms such as suicide and sexual exploitation. FTC Chairman Andrew N. Ferguson emphasized the agency's dual goals of protecting children online while fostering innovation in the technology sector. The investigation highlights growing regulatory scrutiny of AI as its use becomes more widespread among vulnerable populations.