The Federal Trade Commission (FTC) has taken a significant step by unanimously approving measures to streamline and fortify its investigative procedures related to artificial intelligence (AI). This move empowers the FTC to expand its authority in issuing civil investigative demands (CIDs), akin to subpoenas, for nonpublic inquiries over the next decade.
The aim is to facilitate the commission’s inquiries into products and services leveraging AI or capable of identifying AI usage, enabling more robust oversight and compelling cooperation from entities involved in developing AI tools and solutions.
Chairperson Lina Khan has advocated for stringent AI regulations, emphasizing the FTC’s jurisdiction to address emerging concerns in the rapidly evolving AI sector. The FTC’s proactive stance extends to warning AI developers against utilizing algorithms that produce discriminatory outcomes, while urging transparency frameworks and adherence to independent standards.
In its efforts to regulate the burgeoning AI landscape, the FTC published guidance in 2021, emphasizing the FTC Act’s mandate for truthful and evidence-backed consumer statements, cautioning against overpromising capabilities in the rush to adopt new AI technology.
The omnibus resolution underscores the FTC’s recognition of AI’s potential for misuse, including engaging in fraudulent activities, infringing on privacy, and posing competition issues. The resolution aligns with directives from the White House executive order on AI, emphasizing the FTC’s role in fostering consumer protections and fostering competitive AI development.
As the FTC intensifies its focus on AI-related investigations, the announcement reflects the agency’s commitment to curbing potential violations of laws and regulations while advocating for responsible AI development in the interest of consumers and competition.
