A class action lawsuit has been filed against OpenAI and Microsoft. Here’s a low-down on how this lawsuit could potentially impact Sam Altman’s company’s prospects.
OpenAI, the San Francisco-based AI start-up that has been hogging the limelight ever since it introduced the sensational chatbot ChatGPT seems to be attracting lawsuits from all over. While the company’s innovations have paved the way for many more to find their hold in the rapidly evolving AI space, OpenAI and its prime backer Microsoft has been embroiled in numerous legal battles ever since.
From lawsuits accusing violation of privacy to copyright infringement, OpenAI has been grappling with numerous accusations in the last few months. The troubles for OpenAI and Microsoft are mounting with each passing day. On Wednesday, a 150-page long class action lawsuit was filed against OpenAI and Microsoft.
What is a class action lawsuit?
Before we go any further, it is important to understand class action lawsuits. It is essentially a civil legal action in which an individual or more sues a person or entity on behalf of a larger group or class of people. This happens when the class members have been wronged by the defendant and the lawsuit aims to the class of plaintiffs. Any proceeds from a judgement or settlement are shared among the plaintiffs after deducting legal fees.
Who are the plaintiffs in the lawsuit?
According to the 150-page document accessed by indianexpress.com, the plaintiffs in the class action lawsuit against OpenAI and Microsoft are individuals represented by the US-based Clarkson Law Firm, P.C. (professional corporation).
The complaint by multiple plaintiffs alleges that OpenAI and Microsoft developed, marketed, and operated their AI products including ChatGPT ‘unlawfully and harmfully’. The defendants have been accused of using stolen private information from internet users without their consent or knowledge.
The lawsuit also claims that the companies in question continue to unlawfully gather personal data from millions of unsuspecting users from around the world to train their products. The complaint has listed multiple counts such as the violations of the Electronic Communications Privacy Act, the California Invasion Privacy Act, the Computer Fraud and Abuse Act, etc. The complainants seek relief against the alleged violations in the ongoing case.
What does this mean for OpenAI and Microsoft?
The class action lawsuit comes at a time when the clamour around the need for regulation of AI is growing louder. Sam Altman, the CEO of OpenAI, testified before a Senate hearing on the risk of AI in May. The CEO had said at the time that regulatory intervention from governments would be crucial to mitigating the risks of AI models that are increasingly growing powerful. So far, the European Union has been the only authority to come close to AI regulation, however, there has been no consolidated act yet. The latest class action lawsuit is directed at the courts to regulate OpenAI and Microsoft.
The class action lawsuit was filed on June 28 in the US District Court for the Northern District of California. It essentially argues that OpenAI, along with restructuring itself as a for-profit business in 2019, deployed a strategy to secretly harvest massive amounts of personal data from the internet.
The lawsuit went on to say that the companies harvested “essentially every piece of data exchanged on the internet it could take.” It alleged that all this was done without providing notice to hundreds of millions of internet users and without their consent. The plaintiffs alleged that OpenAI engaged in ‘scraping of our digital footprints’ at every opportunity, later ‘unjustly earned profits based on unauthorised harvesting of personal data.
On the potential risk to humanity
The class action lawsuit alleges that the AI products developed by OpenAI including ChatGPT pose a potentially catastrophic risk to humanity. In essence, the complaint compares the risks posed by AI products to the risks posed by the Manhattan Project’s development of nuclear weapons in the 1940s.
Further, the lawsuit also cites statements made by AI experts who cautioned that without proper safeguards and regulations, the unchecked release of new AI technologies can lead to situations where AI can act against human values and interests. It could potentially exploit human beings disregarding their well-being or consent, and may even eliminate humans seeing it as a threat to its goals.
The lawsuit mentions around 11 different regulatory options that the plaintiffs want OpenAI to comply with. Along with seeking damages, the lawsuit also seeks a temporary freeze on commercial access to and development of ChatGPT until OpenAI complies with at least a few of the regulatory options cited. These include an AI council to approve products before deployment, full transparency, accountability, an option for users to opt out of data collection, and technological safety measures.
Source:indianexpress.com