Compliance » How AI Will Be Regulated

How AI Will Be Regulated

Three business people gathered around a laptop on a table, with vague technology-suggesting icons superimposed over the blue-tinged photo. One of the persons appears to be explaining something to the other two.

May 30, 2023

The FTC will probably be the first agency to propose AI regulations, and if a NY Times OpEd written by FTC Chair Lina Khan is any guide, the proposal will address the potential dominance of AI by Big Tech. Any regulation the FTC proposes would be for commercial uses only and include deceiving consumers, facilitating pricing collusion, creating fake consumer reviews, plus any other consumer sales engagement that appears to be human but is not. According to the Katten Post referenced above, enhanced disclosures seem to be the most obvious remedy because outright bans would be difficult to achieve legally. The Consumer Protection Financial Bureau is also likely to require enhanced disclosure from the financial industry in situations where AI is interacting directly with consumers in ways that are not readily apparent, recommending products for example.

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