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



Synthetic intelligence instruments corresponding to ChatGPT may result in a “turbocharging” of shopper harms together with fraud and scams, and the US authorities has substantial authority to crack down on AI-driven shopper harms underneath present regulation, members of the Federal Commerce Fee mentioned Tuesday.

Addressing Home lawmakers, FTC chair Lina Khan mentioned the “turbocharging of fraud and scams that may very well be enabled by these instruments are a severe concern.”

In current months, a brand new crop of AI instruments have gained consideration for his or her capacity to generate convincing emails, tales and essays in addition to pictures, audio and movies. Whereas these instruments have potential to alter the best way individuals work and create, some have additionally raised issues about how they may very well be use to deceive by impersonating people.

Whilst policymakers throughout the federal authorities debate how one can promote particular AI guidelines, citing issues about potential algorithmic discrimination and privateness points, firms may nonetheless face FTC investigations as we speak underneath a spread of statutes which have been on the books for years, Khan and her fellow commissioners mentioned.

“All through the FTC’s historical past we’ve got needed to adapt our enforcement to altering know-how,” mentioned FTC Commissioners Rebecca Slaughter. “Our obligation is to do what we’ve all the time executed, which is to use the instruments we’ve got to those altering applied sciences … [and] not be scared off by this concept that this can be a new, revolutionary know-how.”

FTC Commissioner Alvaro Bedoya mentioned firms can’t escape legal responsibility just by claiming that their algorithms are a black field.

“Our employees has been persistently saying our unfair and misleading practices authority applies, our civil rights legal guidelines, truthful credit score, Equal Credit score Alternative Act, these apply,” mentioned Bedoya. “There’s regulation, and firms might want to abide by it.”

The FTC has beforehand issued intensive public steerage to AI firms, and the company final month received a request to research OpenAI over claims that the corporate behind ChatGPT has misled shoppers in regards to the device’s capabilities and limitations.


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