The United States Federal Trade Commission (FTC) has taken a significant step to address the growing concerns surrounding the unlawful use of artificial intelligence (AI).
In a unanimous decision, the FTC approved a streamlined process for investigating cases related to AI, signaling a heightened focus on potential legal violations within the realm of AI applications.
The approved measure empowers the FTC staff to issue civil investigative demands (CIDs), a legal instrument akin to a subpoena, in AI-related investigations.
This streamlining aims to expedite the acquisition of crucial documents, information, and testimonies necessary for consumer protection and competition investigations.
It’s worth noting that the FTC retains its authority to judiciously decide when to issue CIDs.
This omnibus resolution will remain effective for the next ten years, reinforcing the agency’s commitment to scrutinizing AI-related cases.
This move by the FTC, in conjunction with other initiatives, underscores its dedication to addressing the challenges posed by AI technology.
Critics of AI have voiced concerns about its potential to facilitate fraudulent activities, particularly in areas like phishing emails and robocalls.
During a Senate confirmation hearing in September, FTC Commissioner Rebecca Slaughter, who was being considered for re-nomination, echoed the sentiment that the focus should be on tackling issues like the use of AI to enhance the persuasiveness of phishing emails and robocalls.
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While AI has unlocked new avenues for human expression and creativity, it has also introduced novel challenges.
Notably, the emergence of deep fakes, digitally generated AI identities used for fraudulent purposes, has been on the rise.
According to Sumsub data, the proportion of fraud attributed to deep fakes more than doubled between 2022 and the first quarter of 2023, with a significant increase in the United States, from 0.2% to 2.6%.
Recognizing the potential risks associated with voice cloning technology, the FTC unveiled a competition on November 16 to identify the most effective methods for safeguarding consumers from fraud and other risks linked to voice cloning.
As text-to-speech AI technology has advanced, voice cloning has become increasingly sophisticated.
While it holds promise for beneficial applications like providing medical assistance to individuals who have lost their voices due to accidents or illnesses, it also poses security concerns that the FTC is determined to address.
In summary, the FTC’s approval of a streamlined process for investigating AI-related cases reflects its commitment to addressing the challenges and risks associated with the expanding use of artificial intelligence in various domains, while also emphasizing the importance of protecting consumers from potential harm.
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