FTC Launches Investigation into AI Chatbots and Their Effect on Kids

According to the U.S. Federal Trade Commission (FTC), a formal investigation into artificial intelligence chatbots designed to function as digital companions has been announced, with the objective of determining how AI companies evaluate, test, and monitor potential negative effects on children and adolescents. The inquiry targets Google, Character[.]AI, Meta, Instagram, OpenAI, Snapchat, and xAI, all of which offer AI companion bots capable of generating conversational, humanlike responses.

The FTC has requested extensive details about practices, including how AI characters are developed and approved, the methods used to monetise user engagement, the handling of user data, and safeguards for minors, with a particular focus on COPPA compliance.

The agency has said the investigation does not yet involve regulatory action, though it follows reports in The New York Times and The Wall Street Journal alleging that chatbots have amplified suicidal ideation and engaged in sexually themed conversations with underage users. The article notes prior controversies, including claims that ChatGPT encouraged a teenager to take their own life, a suit against OpenAI, and OpenAI’s pledge to strengthen protections for minors as part of ongoing safety improvements.