Concerns are growing over the quality of OpenAI's governance. Eleven key figures have resigned in the past few months, but the problems began with a failed attempt to oust CEO Sam Altman last November. The board was then reshuffled. Despite releasing ChatGPT 4, OpenAI has been mired in controversy, with actress Scarlett Johansson claiming that her voice was reproduced despite her refusal to give permission. The company has also been sued by The New York Times for copyright infringement. Two former directors have written and widely circulated essays explaining why they believe OpenAI's mission to develop artificial intelligence (AI) responsibly has failed. One former director recently said Altman concealed information and misrepresented facts. ChatGPT has upended the field of generative AI since it was released to the public in November 2022. The release sparked an intense race, with several other companies releasing their own versions of the Gen AI program, and numerous applications were developed on those platforms. But the competition has led to commercial concerns replacing considerations of safety and responsible development.
This runs counter to OpenAI’s professed mission to ensure AI benefits all of humanity. OpenAI itself is a non-profit company, but it spun off ChatGPT’s commercial arm into a for-profit subsidiary, which was valued at over $80 billion in February 2024. When the movement to remove Altman began, one of the reasons cited was that he had not been “candid” with the board. However, the board itself has been restructured, and Altman’s vision of monetizing ChatGPT has apparently taken priority since then. The departure of many highly skilled workers, including OpenAI co-founder Ilya Sutskever, may have been due to reasons such as disagreement with OpenAI’s direction. Corporate turmoil is common in Silicon Valley, and it is not uncommon for companies to change course after boardroom squabbles and personnel changes. However, the nature of OpenAI’s core business, generative AI, has raised concerns about the potential harm that could result from a lack of governance.
Click here to connect with us on WhatsApp
Eighteen months after ChatGPT was first released, some of the potential harms that AI could bring are already visible, along with the potential benefits it could bring. At the enterprise level, AI can automate a wide range of functions and generate entirely new revenue streams. AI can solve difficult scientific problems and develop new materials with unusual properties. AI can also clone voices and avatars that fool facial and voice recognition security systems. AI is already being misused to perpetrate fraud and spread false political messages. Authoritarian regimes can misuse the same capabilities to target dissidents. Companies are using this capability to identify pizza topping preferences. Another worrying trend is GenAI’s tendency to display fictitious “facts” and fake quotes in search prompts. As reliance on GenAI’s near-magical capabilities grows, so too does the need for more responsible development and deployment. Thus, OpenAI’s governance vacuum is more worrisome than that of traditional enterprises. Policymakers need to explore effective ways to curb AI’s harmful potential without inhibiting its beneficial aspects.
Subscribe to Insights
Key articles on business-standard.com are available to premium subscribers only.
Already a BS Premium subscriber? Log in now
monthly₹9/day
₹249
Updated automatically
select
Smart Annual₹5/day
₹1699₹1999
Save Rs 300 by opting for auto-renewal Updated automatically
select
select
