Federal Trade Commission (FTC) Chair Lina Khan warned House lawmakers on Tuesday that the rise of artificial intelligence tools, such as ChatGPT, could lead to a significant "turbocharging" of consumer harms, including scams and fraud. Khan emphasized that these risks represent a serious concern as the technology gains traction.
In recent months, a new wave of AI applications has attracted attention for its capacity to generate convincing emails, essays, stories, as well as audio, video, and imagery. While these tools offer potential for innovation in work and creativity, they also raise alarms regarding their potential for deception, specifically through the impersonation of individuals.
Despite ongoing debates among federal policymakers regarding the creation of specific AI-focused regulations to address privacy issues and potential algorithmic discrimination, the FTC maintains that companies are already subject to existing laws. Khan and her fellow commissioners noted that businesses could face investigations under a variety of statutes that have been established for years.
"Throughout the FTC’s history we have had to adapt our enforcement to changing technology," said FTC Commissioner Rebecca Slaughter. She stressed that the agency's obligation remains to apply existing tools to new technological developments rather than being discouraged by the idea that AI is a revolutionary advancement. Commissioner Alvaro Bedoya added that companies cannot avoid liability by labeling their algorithms as a "black box." He noted that staff consistently apply unfair and deceptive practices authority, civil rights laws, and the Equal Credit Opportunity Act to these cases, stating, "There is law, and companies will need to abide by it."
The agency has previously provided extensive public guidance to AI companies. Furthermore, the FTC received a request last month to investigate OpenAI, the company behind ChatGPT, regarding allegations that it has misled consumers about the capabilities and limitations of its tools.
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