The FTC’s Concerns about AI and Illegal Schemes
The U.S. Federal Trade Commission (FTC) recently submitted comments to the U.S. Copyright Office expressing concerns about how artificial intelligence (AI) could lead to an increase in illegal schemes and scams online.
The agency emphasized its experience in applying its authority to new technologies and highlighted the importance of enforcing laws related to AI to foster competition, protect developers and users, and safeguard those affected by AI use.
Mainstream Integration of AI
The FTC highlighted that AI is becoming integrated into the mainstream, necessitating swift action from policymakers. It pointed to its previous actions against Amazon for privacy violations related to Alexa devices, where Amazon paid $31 million in penalties.
The agency’s mandate includes enforcing antitrust laws and protecting consumers. The FTC hosted a roundtable discussion on generative AI, engaging with industry professionals who voiced concerns about their work being used without consent for training AI.
Risks Associated with AI Use
The FTC expressed concerns about potential harm to consumers, workers, and small businesses due to the development and release of generative AI tools. It has been exploring the risks associated with AI use, including privacy violations, discrimination automation, deceptive practices, imposter schemes, and scams.
A report by cybersecurity firm SlashNext revealed a 1,265% increase in email phishing attacks since the launch of ChatGPT last fall. Threat actors are leveraging tools like ChatGPT to create sophisticated phishing messages.
Regulatory Landscape Surrounding AI
Similar to the cryptocurrency industry, various U.S. agencies are seeking jurisdiction in the regulatory landscape surrounding AI. There have been discussions about creating a new federal agency to oversee AI regulation.
Former U.S. Federal Communications Commission Commissioner Harold Furchtgott-Roth noted that concerns around AI and privacy may fall under the jurisdiction of the FTC, while intellectual property concerns may be under the purview of the U.S. Patent and Trademark Office.
FTC’s Commitment to Protecting Consumers
Regardless of where regulatory borders are drawn, the FTC is committed to vigorously protecting Americans from deceptive and unfair practices related to AI. The agency emphasized its dedication to using its tools to safeguard the public from unlawful conduct associated with transformative technology.
Hot Take: FTC Takes Aim at Risks Posed by Generative AI
The recent comments submitted by the FTC underscore a growing concern about the potential negative impact of generative AI on consumers, workers, and small businesses. With an increasing integration of AI into everyday life, it is crucial for regulatory authorities like the FTC to address these risks proactively in order to protect individuals from harm caused by deceptive practices facilitated by advanced technologies.
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