FTC chair Lina Khan warns AI could ‘turbocharge’ fraud and scams


Washington
CNN

Artificial intelligence tools like ChatGPT could lead to an “increase” in consumer harms, including fraud and scams, and the U.S. government has significant authority to address consumer harms caused by AI under current law, Federal Trade Commission members said Tuesday.

Addressing House lawmakers, Federal Trade Commission Chairwoman Lina Khan said “the increase in fraud and fraud that can be perpetrated through these tools is a serious concern.”

In recent months, a new generation of artificial intelligence tools has gained attention for their ability to generate compelling emails, stories and essays, as well as images. audio and video. While these tools have the potential to change the way people work and create, some of them also raise concerns about how they can be used to deceive individuals by impersonating them.

Even as policymakers in the federal government debate how to advance specific AI regulations, citing concerns about possible algorithmic discrimination and privacy concerns, companies could still face Federal Trade Commission investigations today under a set of laws that have been on the books for years, Han and her fellow commissioners said.

“Throughout the FTC's history, we have had to adapt our enforcement to changing technologies,” said FTC Commissioner Rebecca Slaughter. “Our responsibility 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.”

Federal Trade Commission Commissioner Alvaro Bedoya said companies can't escape liability by simply saying their algorithms are a “black box.”

“Our employees have consistently stated that our unfair and deceptive practices authorities, our civil rights laws, fair credit, the Equal Credit Opportunity Act apply,” Bedoya said. “There is a law and companies must comply with it.”

The Federal Trade Commission previously issued detailed public guidance for artificial intelligence companies, and last month the agency received a request to investigate OpenAI's allegations that ChatGPT misled consumers about the tool's capabilities and limitations.

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