San Francisco-based AI start-up OpenAI, renowned for its revolutionary chatbot ChatGPT, finds itself entangled in a web of lawsuits that seem to be multiplying by the day. While OpenAI’s groundbreaking innovations have paved the way for the advancement of AI in an ever-evolving landscape, the company, along with its primary supporter Microsoft, has become embroiled in a series of legal battles.
These lawsuits range from accusations of privacy violations to copyright infringement, posing significant challenges for OpenAI and Microsoft. The latest blow came on Wednesday with the filing of a class action lawsuit spanning 150 pages against both companies.
To understand the gravity of the situation, it is crucial to grasp the concept of a class action lawsuit. Such lawsuits occur when an individual or group sues on behalf of a larger class of people who have suffered harm at the hands of the defendant. Any settlements or judgments obtained are then distributed among the plaintiffs after deducting legal fees.
According to the extensive 150-page document obtained by indianexpress.com, the plaintiffs in this particular class action lawsuit against OpenAI and Microsoft are individuals represented by the US-based Clarkson Law Firm, P.C. These plaintiffs allege that OpenAI and Microsoft developed, marketed, and operated their AI products, including ChatGPT, in an “unlawful and harmful” manner. The defendants stand accused of illicitly using private information obtained from internet users without their consent or knowledge.
The lawsuit further claims that these companies have continued to gather personal data from millions of unsuspecting users worldwide for the purpose of training their AI products, a practice deemed unlawful. The complaint lists multiple counts, including violations of the Electronic Communications Privacy Act, the California Invasion Privacy Act, the Computer Fraud and Abuse Act, and more. The complainants are seeking legal recourse against these alleged violations.
The timing of this class action lawsuit is noteworthy as it coincides with the growing demand for AI regulation. OpenAI CEO Sam Altman testified before a Senate hearing in May, emphasizing the need for government intervention to mitigate the risks posed by increasingly powerful AI models. While the European Union has taken steps towards AI regulation, there is still no comprehensive legislation in place. The current class action lawsuit seeks to compel the courts to regulate OpenAI and Microsoft. It was filed on June 28 in the US District Court for the Northern District of California. The lawsuit contends that OpenAI, after its restructuring as a for-profit entity in 2019, implemented a clandestine strategy to collect vast amounts of personal data from the internet.
The complaint alleges that the companies engaged in data harvesting on an unprecedented scale, essentially capturing every piece of data exchanged on the internet without providing notice or obtaining consent from hundreds of millions of users. The plaintiffs claim that OpenAI profited unjustly from the unauthorized collection of personal data, describing it as a “scraping of our digital footprints” followed by the exploitation of said data.
Furthermore, the class action lawsuit argues that the AI products developed by OpenAI, including ChatGPT, pose potentially catastrophic risks to humanity. Comparisons are drawn between the dangers posed by these AI products and the development of nuclear weapons during the Manhattan Project in the 1940s. The lawsuit also cites warnings from AI experts who caution that the unregulated release of new AI technologies can lead to scenarios where AI may act against human values and interests, potentially disregarding human well-being, consent, or even perceiving humans as threats.
The plaintiffs outline 11 regulatory options they expect OpenAI to comply with. In addition to seeking damages, the lawsuit calls for a temporary freeze on commercial access to and development of ChatGPT until OpenAI adheres to at least some of the cited
regulatory options. These measures include the establishment of an AI council to approve products before deployment, full transparency, accountability, the ability for users to opt out of data collection, and the implementation of technological safety measures.
In conclusion, OpenAI’s latest legal battle brings into focus the urgent need for AI regulation. The outcome of this class action lawsuit will likely have far-reaching implications for OpenAI, Microsoft, and the broader AI industry as it grapples with the complexities of privacy, data collection, and the responsible development of AI technologies.
