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FTC President Lina Khan warns AI can ‘accelerate’ fraud and scams




Washington D.C
CNN

Artificial intelligence tools like ChatGPT can lead to “acceleration” of consumer harms including fraud and scams, and the US government has substantial authority to crack down on human harms. AI-induced consumption under applicable law, members of the Federal Trade Commission said Tuesday.

Addressing House lawmakers, FTC chair Lina Khan said “the increase in fraud and scams that can be triggered by these tools is a serious concern.”

In recent months, a host of new AI tools have gained traction for their ability to generate persuasive emails, stories, and essays as well as visuals. sound and videos. While these tools have the potential to change the way people work and create, some have also raised concerns about how they could be used to deceive by impersonating individuals.

Even as policymakers in the federal government debate how to advance specific AI rules, citing concerns about privacy issues and possible algorithmic discrimination, Companies can still face FTC investigations today under a series of statutes that have been in the books for years, Khan and her fellow commissioners said.

“Throughout the history of the FTC, we have had to adapt our enforcement to changing technology,” said Rebecca Slaughter, FTC Commissioner. “Our obligation is to do what we have always done, which is to apply the tools we have to these changing technologies… [and] Don’t be intimidated by the idea that this is a new, revolutionary technology.”

FTC Commissioner Alvaro Bedoya said companies cannot escape liability simply by claiming that their algorithms are a black box.

“Our employees have repeatedly said our unfair and deceptive jurisdictions, our civil rights laws, fair credit, the Credit Opportunity Act,” said Bedoya. Equally, those apply. “There is a law, and companies will need to follow it.”

The FTC previously issued widely public guidance to AI companies and agencies last month received a request to investigate OpenAI over claims that the company behind ChatGPT misled consumers about the tool’s capabilities and limitations.

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