FTC Publishes Comments and Warning on Consumer AI Concerns

In early October, the FTC published a blog post capturing a sample of consumer concerns about the widespread development and use of AI.  The comments come from FTC's query of its database of fraud reports and other material; they were not solicited directly from consumers. Based on its queries, the agency finds that consumers are worried about protecting both intellectual property and important personal information (such as biometric data).  They also worry about diminishing human contact, for example being able to get hold of a person who can resolve a problem via customer service, and about bias in the way AI operates.  Finally, the FTC highlights that fraud is a recurring concern in the use of AI.  

Why It Matters

The FTC is the nation's fair-trade watchdog; its stated purpose is to protect consumers against unfair or misleading commercial practices. In recent years, its remit has grown substantially as it has tackled online privacy matters. With the advent of AI and the multiple ways it can (or can be alleged to) perpetrate abusive or unethical practices, the agency is likely to have its hands full if it chooses to be aggressively involved in policing the new technology. The blog post about AI concludes with a warning shot to business: “We're Keeping An Eye Out.”  Based on the FTC's stated findings, companies should design carefully when incorporating AI into their workflow, and should be especially attentive to fraud, data protection, IP theft, bias, and alternate avenues for resolving consumer complaints.