FTC Launches Formal Investigation into AI Companion Chatbots

 

The Federal Trade Commission has announced a formal inquiry into companies that develop AI companion chatbots, focusing specifically on how these platforms potentially harm children and teenagers. While not currently tied to regulatory action, the investigation seeks to understand how companies “measure, test, and monitor potentially negative impacts of this technology on children and teens”. 

Companies under scrutiny 

Seven major technology companies have been selected for the investigation: Alphabet (Google’s parent company), Character Technologies (creator of Character.AI), Meta, Instagram (Meta subsidiary), OpenAI, Snap, and X.AI. These companies are being asked to provide comprehensive information about their AI chatbot operations and safety measures. 

Investigation scope 

The FTC is requesting detailed information across several key areas. Companies must explain how they develop and approve

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