FTC continues to bang the drum about ‘unfair’ AI practices

AI tools might save someone 10 minutes of busywork, but that isn’t an excuse to avoid guidance from the Federal Trade Commission.

In a blog post written by FTC attorney Michael Atleson, the commission reminded companies that generative AI shouldn’t be used to “trick people into making harmful choices,” specifically mentioning “customizing ads to specific people or groups” as an example.

“A key FTC concern is firms using them in ways that, deliberately or not, steer people unfairly or deceptively into harmful decisions in areas such as finances, health, education, housing, and employment,” Atleson wrote. He also cautioned against inserting ads within generative AI content without making clear that something is an ad and the result of a commercial relationship.

• Earlier this year, the agency shared guidance about companies pitching “false or unsubstantiated claims” around AI. In April, Commissioner Alvaro Bedoya told a privacy conference that “unfair and deceptive trade practice laws apply to AI,” calling for further transparency into firms creating AI tools.

Just last week, FTC chair Lina Khan joined “top officials from US civil rights and consumer protection agencies to put [AI companies] on notice,” the Associated Press reported. “If AI tools are being deployed to engage in unfair, deceptive practices or unfair methods of competition, the FTC will not hesitate to crack down on this unlawful behavior,” Khan said.

+1: The commission also cautioned companies building or using AI to think twice before they “remove or fire personnel devoted to ethics and responsibility for AI and engineering.” We’re sure it’s totally unrelated, but in March, Microsoft laid off its ethics and society team dedicated to AI.

To show that they’re not always party poopers, Atleson ended this blog with a kicker so good we figured we’d use it ourselves: “For people interacting with a chatbot or other AI-generated content, mind Prince’s warning from 1999: ‘It’s cool to use the computer. Don’t let the computer use you.’”