FTC Chair Lina Khan Warns AI Could ‘Turbocharge’ Fraud and Scams
WASHINGTON – Federal Trade Commission Chair lina Khan warned Thursday that artificial intelligence has the potential to significantly amplify fraud and scams, even as the agency prepares to leverage existing legal authorities to police the rapidly evolving technology. Khan and fellow commissioners emphasized the FTC doesn’t need new laws to address potential harms caused by AI, asserting current statutes regarding unfair and deceptive practices, civil rights, and fair credit already apply.
the warning comes as policymakers debate specific AI regulations amid concerns about algorithmic discrimination and privacy. Though, Khan signaled the FTC will proactively investigate companies utilizing AI under existing laws, stating the agency will not be “scared off by this idea that this is a new, revolutionary technology.” The FTC has already issued guidance to AI companies and, in March, received a request to investigate openai, the creator of ChatGPT, over potential consumer deception regarding the tool’s capabilities.
“Throughout the FTC’s history we have had to adapt our enforcement to changing technology,” said FTC Commissioner Rebecca Slaughter. “Our obligation is to do what we’ve always done, which is to apply the tools we have to these changing technologies.”
commissioner Alvaro Bedoya added that companies cannot avoid liability by claiming their algorithms are opaque. “Our staff has been consistently saying our unfair and deceptive practices authority applies, our civil rights laws, fair credit, Equal Credit Prospect Act, those apply,” Bedoya said. “There is law, and companies will need to abide by it.”
The FTC previously investigated AI companies and, last month, responded to a request to investigate OpenAI following claims that the company misled consumers about ChatGPT’s capabilities and limitations.
