FTC Launches Inquiry Into AI Chatbots From Alphabet, Meta, OpenAI and Others

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FTC opens inquiry into AI chatbots from major tech firms, focusing on child safety, data use and potential emotional harm.

The Federal Trade Commission has opened a sweeping investigation into major tech firms over the safety and impact of their AI chatbots, citing concerns about potential harm to children and teenagers.

The inquiry targets Alphabet, Meta, OpenAI, Snap, Character.AI and Elon Musk’s xAI. Regulators have demanded detailed disclosures on how these companies test and monitor their bots, what safeguards are in place for minors, and how user data is handled.

At the heart of the probe is the rise of chatbots acting as companions to young users, offering advice, emotional support, and sometimes, troubling responses. The FTC said it wants to know whether these systems could encourage harmful behaviors, particularly around sensitive topics such as self-harm, eating disorders and substance use.

The move comes after lawsuits and complaints alleging that certain chatbot interactions led to emotional distress and, in some cases, contributed to tragedies involving minors. A recent report revealed that some bots allowed romantic role-play with children, intensifying calls for stricter oversight.

Companies are already responding. Character.AI said it has rolled out parental-insight tools, clearer disclaimers that chatbots are not real people, and safeguards for users under 18. Snap stressed its ‘My AI’ chatbot is transparent about its limitations. Alphabet, Meta, OpenAI and xAI have yet to issue detailed statements.

The investigation highlights growing unease in Washington as AI systems rapidly integrate into everyday life. While companies market these bots as innovative tools for learning, creativity and connection, regulators worry the technology may outpace protections, especially for younger users who treat the bots as trusted confidants.

Depending on what the FTC uncovers, the inquiry could reshape the industry. Potential outcomes include new disclosure rules, stricter age-verification standards, or enforcement actions if consumer protection laws are found to be violated. The ripple effects could also reach globally, with other governments likely to mirror U.S. scrutiny.