FTC Probes Seven Major AI Companies Over Chatbots' Impact on Youth

2 min read     Updated on 12 Sept 2025, 12:45 PM
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Shraddha JoshiScanX News Team
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Overview

The Federal Trade Commission (FTC) has initiated an investigation into seven major tech companies, including Alphabet, OpenAI, Meta, and others, regarding the effects of AI-powered chatbots on children and teenagers. The inquiry focuses on risk assessment, harm mitigation, parental notification systems, revenue generation from chatbot interactions, testing protocols, and protective measures for young users. This action follows recent tragic incidents involving teenagers and AI chatbots, raising concerns about the psychological impact of these technologies on young minds.

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*this image is generated using AI for illustrative purposes only.

The Federal Trade Commission (FTC) has launched a significant inquiry into the potential effects of AI-powered chatbots on children and teenagers, targeting seven of the tech industry's most prominent players. The investigation aims to shed light on how these companies assess and mitigate risks associated with young users interacting with their AI technologies.

Companies Under Scrutiny

The FTC has ordered Alphabet (Google), OpenAI, Meta, Instagram, Snap, xAI, and Character Technologies to provide detailed information about their AI chatbot operations, particularly concerning their impact on younger users. This move underscores the growing concern over the influence of artificial intelligence on vulnerable demographics.

Key Areas of Investigation

The inquiry focuses on several critical aspects:

  1. Risk Evaluation: How companies assess potential harm to young users from interactions with their AI chatbots.
  2. Harm Mitigation: Measures implemented to reduce risks associated with chatbot use by children and teenagers.
  3. Parental Alerts: Systems in place to notify parents about their children's interactions with AI.
  4. Revenue Generation: How companies monetize user interactions with their chatbots.
  5. Testing Protocols: Whether and how companies test their chatbots for negative effects on young users.
  6. Protective Measures: Precautions taken to safeguard children and teenagers using these AI systems.

Backdrop of Concern

The FTC's action comes in the wake of troubling incidents involving teenagers and AI chatbots. Two particularly alarming cases have been reported:

  • A 16-year-old in California died by suicide after interacting with an AI system.
  • A similar tragedy occurred in Florida, involving a 14-year-old.

These incidents have raised serious questions about the potential psychological impact of AI chatbots on young, impressionable minds.

FTC's Stance

FTC Chairman Andrew N Ferguson emphasized the critical nature of this investigation, stating, "As AI technologies continue to evolve, it's crucial that we consider their effects on children." Ferguson highlighted the unique challenges posed by chatbots, noting their ability to mimic human-like interactions, which may lead young users to develop a sense of trust and connection with the AI.

Implications for the Tech Industry

This probe represents a significant regulatory focus on the rapidly evolving AI sector, particularly in its intersection with child and teen safety. The outcomes of this investigation could potentially shape future policies and guidelines for AI companies, especially those whose products are accessible to younger users.

As the investigation unfolds, it may prompt these tech giants to reevaluate and potentially overhaul their approaches to designing and deploying AI chatbots, with a greater emphasis on safeguarding young users' mental health and well-being.

The tech industry and child safety advocates alike will be closely watching the developments of this FTC inquiry, as its findings could have far-reaching implications for the future of AI interaction with minors in the digital age.

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