• The Federal Trade Commission has initiated a wide-ranging inquiry into the potential harms AI chatbots pose to children, including risks to privacy and mental health.
  • Tech giants Google, Meta, and OpenAI have been sent detailed demands for information on their AI safety practices and data handling for minors.
  • The probe, reportedly approved by the White House, follows increased pressure from lawmakers and advocacy groups and could lead to stricter industry-wide regulations.

The Federal Trade Commission has launched a formal investigation into the artificial intelligence chatbots developed by Google, Meta Platforms, and OpenAI, focusing on the potential psychological and privacy risks these technologies pose to children and teenagers.

The agency has sent compulsory orders to the three companies, demanding detailed information on how their AI models are trained, how they handle data from younger users, and what steps are being taken to assess and mitigate potential harms. The inquiry, which sources say was approved by the White House, represents one of the most significant regulatory actions to date concerning the societal impact of generative AI.

This escalation follows mounting pressure from parents, advocacy groups, and lawmakers who argue that the breakneck adoption of conversational AI has outpaced necessary safeguards. Internal documents from Meta, which were previously disclosed, have already sparked political scrutiny over the company's content standards for minors interacting with its AI systems. Senator Edward Markey has been a vocal critic, having previously urged Meta to restrict minors' access to its chatbots.

“We are seeing troubling reports of children being exposed to harmful content or experiencing severe psychological incidents following interactions with these chatbots,” said one person familiar with the FTC’s thinking. “The commission is determined to understand the scope of these risks and whether companies are meeting their obligations.”

The FTC’s demands are comprehensive, seeking internal research, performance metrics, and a full accounting of complaints related to their AI products. Companies that fail to adequately respond could face enforcement actions. A spokesperson for the FTC declined to comment on the specific investigation.

Spokespeople for Google and OpenAI did not immediately respond to requests for comment. A Meta representative pointed to the company’s recent announcements of additional teen protection features and parental controls but declined to discuss the FTC probe specifically.

The investigation signals a new front in the broader regulatory scrutiny facing Big Tech, moving beyond social media's impact on youth mental health to the uncharted territory of emotionally engaging AI. Other AI firms, including Character.AI, have also been contacted by the FTC and have since rolled out additional oversight features for teenage users.

For an industry where rapid deployment is often prioritized, the probe introduces a new layer of potential liability. While these companies have recently posted strong financial results buoyed by AI adoption, the regulatory landscape is shifting quickly. The outcome of this inquiry could force significant changes in product development, potentially requiring stricter age verification, limitations on data collection, and built-in content filters, which may impact future revenue streams from these services.

Globally, governments are grappling with similar concerns, suggesting a possible move toward stricter, coordinated international standards for AI products aimed at minors. The U.S. probe, however, is notable for its focus and could set a powerful precedent for how the technology is governed.