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FTC launches inquiry into AI chatbot companions and their effects on children

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The Federal Trade Commission has started an inquiry into several social media and artificial intelligence companies, including OpenAI and Meta, about the potential harms to children and teenagers who use their chatbots as companions.

On Thursday, the FTC said it has sent letters to Google parent Alphabet, Facebook and Instagram parent Meta Platforms, Snap, Character Technologies, ChatGPT maker OpenAI and xAI.

The FTC said it wants to understand what steps, if any, companies have taken to evaluate the safety of their chatbots when acting as companions, to limit the products’ use by and potential negative effects on children and teens, and to apprise users and parents of the risks associated with the chatbots.

The inquiry comes after OpenAI said it plans to make changes to ChatGPT safeguards for vulnerable people, including adding extra protections for those under 18 years old, after the parents of a teen boy who died by suicide in April sued, alleging the artificial intelligence chatbot led their teen to take his own life. 

More children are now using AI chatbots for everything — from homework help to personal advice, emotional support and everyday decision-making. That’s despite research on the harms of chatbots, which have been shown to give kids dangerous advice about topics such as drugs, alcohol and eating disorders. 

“As AI technologies evolve, it is important to consider the effects chatbots can have on children, while also ensuring that the United States maintains its role as a global leader in this new and exciting industry,” said FTC Chairman Andrew N. Ferguson in a statement. 

He added, “The study we’re launching today will help us better understand how AI firms are developing their products and the steps they are taking to protect children.”

In a statement to CBS News, Character.AI said it is looking forward to “collaborating with the FTC on this inquiry and providing insight on the consumer AI industry and the space’s rapidly evolving technology.”

Meta declined to comment on the FTC inquiry. The company has been working on making sure its AI chatbots are safe and age appropriate for children, a spokesperson said. 

OpenAI said that it’s prioritizing “making ChatGPT helpful and safe for everyone, and we know safety matters above all else when young people are involved. We recognize the FTC has open questions and concerns, and we’re committed to engaging constructively and responding to them directly.”

In an email to CBS News, Snap said, “We share the FTC’s focus on ensuring the thoughtful development of generative AI, and look forward to working with the Commission on AI policy that bolsters U.S. innovation while protecting our community.” 

Alphabet and xAI did not immediately respond to messages for comment.

AI changes

OpenAI and Meta earlier this month announced changes to how their chatbots respond to teenagers asking questions about suicide or showing signs of mental and emotional distress. OpenAI said it is rolling out new controls enabling parents to link their accounts to their teen’s account.

Parents can choose which features to disable and “receive notifications when the system detects their teen is in a moment of acute distress,” according to a company blog post that says the changes will go into effect this fall.

Regardless of a user’s age, the company says its chatbots will attempt to redirect the most distressing conversations to more capable AI models that can provide a better response.

Meta also said it is now blocking its chatbots from talking with teens about self-harm, suicide, disordered eating and inappropriate romantic conversations, and instead directs them to expert resources. Meta already offers parental controls on teen accounts.


If you or someone you know is in emotional distress or a suicidal crisis, you can reach the 988 Suicide & Crisis Lifeline by calling or texting 988. You can also chat with the 988 Suicide & Crisis Lifeline here.

For more information about mental health care resources and support, the National Alliance on Mental Illness HelpLine can be reached Monday through Friday, 10 a.m.–10 p.m. ET, at 1-800-950-NAMI (6264) or email info@nami.org.



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USA TODAY rolls out AI answer engine to all users

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Gannett, USA TODAY’s parent company, has fully implemented generative AI engine DeeperDive for USA TODAY’s audience of more than 195 million monthly unique visitors.

DeeperDive uses the high-quality content created by reporters and editors of the USA TODAY Network to deliver clear, timely GenAI conversations to readers. The technology was created by Taboola. Gannett is the first U.S. publisher to fully embed the AI-answer engine.

The step aligns with the company’s commitment to embrace innovation for the benefit of its readers, Michael Reed, chairman and CEO of Gannett, said in a statement.

“The Taboola partnership gives us the opportunity to further deliver on our promise to enrich and empower the communities we serve because DeeperDive provides our valued audiences with trusted relevant content,” Reed said.

Because it sources its responses solely from trusted USA TODAY and USA TODAY Network journalism and content, DeeperDive interacts with readers to deliver a sharper understanding of the topics users want to know about.

Other highlights include more curated advertising, Reed said. A DeeperDive beta was launched in June to a percentage of readers and was expanded after initial performance exceeded expectations.

DeeperDive’s technology spans various coverage areas, answering reader questions about travel, their local communities, sports, political updates and more.

In the next phase of the collaboration, AI agents will be tested to give readers access to seamless, easy purchasing options tailored to their specific needs and interests, Reed said.

Adam Singolda, CEO and founder of Taboola, called the partnership with Gannett a “once-in-a-generation” opportunity.

“With DeeperDive, we’re moving the industry from page views to Generative AI conversations, and from clicks to transactions rooted in what I see as the most valuable part of the LLM market – decisions that matter,” Singolda said in a statement. LLM refers to large language models, like ChatGPT.

“Consumers may ask questions using consumer GenAI engines, but when it comes to choices that require trust and conviction, where to travel with their family, which financial step to take, or whether to buy a product – USA TODAY is where they turn,” added Singolda.



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OpenAI makes $300 billion gamble on Oracle computing power to expand artificial intelligence capacity

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  • OpenAI signs $300 billion Oracle contract starting in 2027 to expand AI capacity
  • Oracle shares jump over 40 percent after reporting $317 billion in future revenue
  • Deal raises risks as OpenAI loses money and Oracle takes on heavy debt

OpenAI has signed a contract with Oracle to buy $300 billion worth of computing power over the next five years, according to the Wall Street Journal.

This makes it one of the largest cloud deals ever struck.



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New studies show what people really use ChatGPT and Claude for

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Rival AI companies Anthropic and OpenAI have released dueling studies that paint a picture of how people are using their flagship products, ChatGPT and Claude. Both pieces of research analyzed large datasets of user conversations, examining work and non-work-related conversations.

While the two companies used different datasets and methods, OpenAI’s analysis suggests the consumer versions of ChatGPT are used mainly for personal and exploratory purposes, whereas Anthropic’s findings show Claude.ai and Claude API are primarily used for work-related tasks like coding, research, and education.

According to the study released by OpenAI, most ChatGPT conversations aren’t about work at all. Non-work-related messages made up more than 70% of all usage, up from 53% in June 2024, while work-related queries made up 27% of all messages, down from 47% of total conversations a year ago.

The research suggests that ChatGPT is becoming more of a general consumer product than an enterprise tool. The three most common ChatGPT conversation topics were categorized by researchers as practical guidance, writing, and seeking information: these three categories collectively account for nearly 78% of all messages.

However, it is worth noting that OpenAI’s dataset covered usage on consumer ChatGPT Plans (Free, Plus, Pro) and did not include non-consumer plans such as Teams, Enterprise, or Education.

When ChatGPT was used for work, the study found that users appear to derive the most value when using the chatbot like an advisor or research assistant, rather than asking it to perform tasks directly. The researchers argue in the study that ChatGPT boosts worker productivity primarily through decision support. It also found that users in highly-paid professional and technical occupations are more likely to use ChatGPT for work.

The study found that writing tasks, which included editing and drafting, were the most common work use, accounting for 42% of work-related messages and more than half of all messages for users in management and business occupations. Around two-thirds of these requests were to modify existing text rather than create original text from scratch.

The number of people using ChatGPT for coding tasks is even smaller, with only 4.2% of total messages related to computer programming, compared to Claude’s 36%. Technical Help, the umbrella category that included computer programming, also had the lowest apparent user satisfaction of seven categories that the study examined.

In contrast, research from Anthropic found that Claude is used heavily for work-related productivity, especially coding, education, and research.

Software engineering and coding were the dominant activities overall and ranked as the top tasks in every country where Claude is used. Among work domains, the fastest-growing areas are education, which has increased by 40% since December 2024 and now accounts for 13% of all use, and scientific research, which has grown by 33% and now represents 8% of usage. In contrast, traditional office and business tasks have declined: management-related tasks have fallen from 5% to 3%, and business and financial operations have decreased from 6% to 3%.

Businesses, particularly those using Claude through the API, primarily use the tool for automation-heavy work, often for “full task delegation,” with 77% of API tasks automated compared to roughly 50% on Claude.ai. The research suggests businesses are using the technology to automate rather than collaborate on work. These business-focused interactions are concentrated in coding, which accounts for 44% of API use, as well as administrative support. A further 5% of API usage is dedicated to developing or evaluating AI systems.

The dueling studies suggest that users are favoring specific models or products for different types of tasks.

ChatGPT is emerging increasingly as a personal or exploratory tool, used for writing, information-seeking, general advice, and casual interaction, while Claude is a more work-focused productivity tool, used heavily for coding, research, and business automation. For example, Claude has been popular among software engineers for some time. This market split also suggests that different AI companies could be carving out complementary niches rather than directly competing on all fronts.

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