US FTC Probes AI Chatbots Over Child Safety Concerns

The US Federal Trade Commission (FTC) said it is investigating AI chatbots that act as digital companions, focusing on child safety.

The agency issued orders to seven companies, including Alphabet, Meta, OpenAI, Snap, Character.AI, and Elon Musk’s xAI Corp, seeking details on how chatbots are monitored for negative effects and compliance with privacy laws protecting minors. The inquiry examines how chatbots simulate human relationships, monetise engagement, develop personalities, enforce age restrictions, and manage user data. FTC Chairman Andrew Ferguson said protecting children online is a priority while maintaining US leadership in AI.

The commission voted unanimously to launch the study, which could inform future regulatory action. The investigation follows lawsuits and concerns over AI chatbots’ psychological impact on minors.