FTC Refers Complaint Against Snap Inc. to DOJ Over Alleged Harmful AI Chatbot

The U.S. Federal Trade Commission (FTC) announced it has referred a complaint against Snap Inc. (NYSE: SNAP) to the Department of Justice (DOJ). The complaint alleges that Snapchat’s artificial intelligence chatbot, My AI, caused harm to young users.

Although the FTC did not disclose specific details about the harm, it stated that making the referral public serves the public interest. The agency's investigation reportedly found "reason to believe Snap is violating or is about to violate the law."

This move highlights growing concerns about the safety of AI technologies, particularly those targeting younger demographics. Snapchat, widely used by teens and young adults, integrated My AI into its platform earlier this year, sparking debates about its impact on users.

Following the news, Snap's shares briefly dipped before stabilizing, ending the day unchanged.

This development underscores the increasing scrutiny on tech companies deploying AI-driven tools and their responsibility to protect user welfare, especially among vulnerable groups.