In a recent podcast episode of Clearly Conspicuous, the regulation of artificial intelligence (AI) by the Federal Trade Commission (FTC) was discussed in detail. Michael Atleson, a senior attorney for the FTC, shared valuable insights on the FTC’s approach to regulating AI and its impact on businesses across various industries.
During the webinar presentation, Mr. Atleson covered a wide range of topics, including the definition of AI, the FTC’s philosophy on regulating AI, recent enforcement actions, federal directives, bias and discrimination, and the future of AI regulation. The FTC views AI through the lens of consumer protection, emphasizing the importance of companies acknowledging the risks and potential negative consequences of AI on consumers.
The FTC’s legal basis for taking action against companies that deploy AI in a harmful or deceptive manner lies in Section 5 of the FTC Act, which prohibits unfair or deceptive advertising practices. The FTC has already taken enforcement actions against companies that have misled consumers with exaggerated claims about the capabilities of their AI systems, deceptive marketing practices, and false promises of profitability.
The key takeaway from the podcast is that the FTC is serious about regulating and enforcing laws impacting AI technology. Businesses using AI systems must adhere to the principles outlined in Section 5 of the FTC Act to avoid facing enforcement actions. The FTC’s role in developing policies for governmental agencies and legislation makes them a major influencer in the regulation of AI.
Stay tuned for more updates on AI regulation in the next podcast episode of Clearly Conspicuous. Until then, businesses are advised to stay informed and compliant with FTC regulations to ensure success in this rapidly evolving regulatory environment.