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FTC scrutinizes OpenAI, Meta, and others on AI companion safety for kids

by Investor News Today
September 12, 2025
in Blockchain
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FTC scrutinizes OpenAI, Meta, and others on AI companion safety for kids
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ZDNET’s key takeaways

  • The FTC is investigating seven tech corporations constructing AI companions.
  • The probe is exploring security dangers posed to youngsters and youths.
  • Many tech corporations supply AI companions to spice up person engagement.

The Federal Commerce Fee (FTC) is investigating the security dangers posed by AI companions to youngsters and youngsters, the company introduced Thursday.

The federal regulator submitted orders to seven tech corporations constructing consumer-facing AI companionship instruments — Alphabet, Instagram, Meta, OpenAI, Snap, xAI, and Character Applied sciences (the corporate behind chatbot creation platform Character.ai) — to supply info outlining how their instruments are developed and monetized and the way these instruments generate responses to human customers, in addition to any safety-testing measures which are in place to guard underage customers.

Additionally: Even OpenAI CEO Sam Altman thinks you should not belief AI for remedy

“The FTC inquiry seeks to grasp what steps, if any, corporations have taken to guage the security of their chatbots when appearing as companions, to restrict the merchandise’ use by and potential unfavourable results on youngsters and youths, and to apprise customers and fogeys of the dangers related to the merchandise,” the company wrote within the launch.

These orders had been issued beneath part 6(b) of the FTC Act, which grants the company the authority to scrutinize companies with out a particular regulation enforcement function.

The rise and fall(out) of AI companions

Many tech corporations have begun providing AI companionship instruments in an effort to monetize generative AI techniques and enhance person engagement with current platforms. Meta founder and CEO Mark Zuckerberg has even claimed that these digital companions, which leverage chatbots to reply to person queries, might assist mitigate the loneliness epidemic.

Elon Musk’s xAI lately added two flirtatious AI companions to the corporate’s $30/month “Tremendous Grok” subscription tier (the Grok app is at present obtainable to customers ages 12 and over on the App Retailer). Final summer time, Meta started rolling out a characteristic that permits customers to create customized AI characters in Instagram, WhatsApp, and Messenger. Different platforms like Replika, Paradot, and Character.ai are expressly constructed round using AI companions. 

Additionally: Anthropic says Claude helps emotionally help customers – we’re not satisfied

Whereas they range of their communication types and protocol, AI companions are typically engineered to imitate human speech and expression. Working inside what’s basically a regulatory vacuum with only a few authorized guardrails to constrain them, some AI corporations have taken an ethically doubtful strategy to constructing and deploying digital companions. 

An inner coverage memo from Meta reported on by Reuters final month, for instance, exhibits the corporate permitted Meta AI, its AI-powered digital assistant, and the opposite chatbots working throughout its household of apps “to have interaction a baby in conversations which are romantic or sensual,” and to generate inflammatory responses on a variety of different delicate matters like race, well being, and celebrities.

In the meantime, there’s been a blizzard of current studies of customers growing romantic bonds with their AI companions. OpenAI and Character.ai are each at present being sued by mother and father who allege that their youngsters dedicated suicide after being inspired to take action by ChatGPT and a bot hosted on Character.ai, respectively. In consequence, OpenAI up to date ChatGPT’s guardrails and mentioned it might increase parental protections and security precautions. 

Additionally: Sufferers belief AI’s medical recommendation over medical doctors – even when it is improper, examine finds

AI companions have not been a totally unmitigated catastrophe, although. Some autistic individuals, for instance, have used them from corporations like Replika and Paradot as digital dialog companions with the intention to observe social expertise that may then be utilized in the actual world with different people. 

Defend youngsters – but in addition, preserve constructing

Underneath the management of its earlier chairman, Lina Khan, the FTC launched a number of inquiries into tech corporations to analyze probably anticompetitive and different legally questionable practices, corresponding to “surveillance pricing.”

Federal scrutiny over the tech sector has been extra relaxed in the course of the second Trump administration. The President rescinded his predecessor’s government order on AI, which sought to implement some restrictions across the expertise’s deployment, and his AI Motion Plan has largely been interpreted as a inexperienced gentle for the business to push forward with the development of costly, energy-intensive infrastructure to coach new AI fashions, with the intention to preserve a aggressive edge over China’s personal AI efforts.

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The language of the FTC’s new investigation into AI companions clearly displays the present administration’s permissive, build-first strategy to AI. 

“Defending youngsters on-line is a high precedence for the Trump-Vance FTC, and so is fostering innovation in crucial sectors of our economic system,” company Chairman Andrew N. Ferguson wrote in a press release. “As AI applied sciences evolve, you will need to contemplate the consequences chatbots can have on youngsters, whereas additionally guaranteeing that the USA maintains its position as a world chief on this new and thrilling business.”

Additionally: I used this ChatGPT trick to search for coupon codes – and saved 25% on my dinner tonight

Within the absence of federal regulation, some state officers have taken the initiative to rein in some elements of the AI business. Final month, Texas lawyer basic Ken Paxton launched an investigation into Meta and Character.ai “for probably participating in misleading commerce practices and misleadingly advertising and marketing themselves as psychological well being instruments.” Earlier that very same month, Illinois enacted a regulation prohibiting AI chatbots from offering therapeutic or psychological well being recommendation, imposing fines as much as $10,000 for AI corporations that fail to conform.



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