FTC chair Lina Khan warns AI could ‘turbocharge’ fraud and scams
In a recent statement, members of the Federal Trade Commission (FTC) highlighted the potential risks associated with the rapid advancement of artificial intelligence (AI) tools, particularly those like ChatGPT. They warned that these technologies could “turbocharge” consumer harms, including an increase in fraud and scams. The FTC emphasized that while AI can offer numerous benefits, it also poses significant threats that could exploit consumers in new and harmful ways. For instance, scammers could leverage AI to create more sophisticated phishing schemes, impersonate individuals convincingly, or automate fraudulent transactions, making it easier for bad actors to deceive unsuspecting victims.
The FTC members asserted that the agency has substantial authority to address these AI-driven consumer harms under existing laws. They indicated that the commission is prepared to take action against companies that misuse AI technologies to engage in deceptive practices or harm consumers. This includes the potential for regulatory scrutiny and enforcement actions aimed at ensuring that AI developers and users adhere to ethical standards and protect consumer rights. With the growing integration of AI into everyday life, the FTC’s proactive stance highlights the need for a balanced approach that fosters innovation while safeguarding consumers from emerging threats. As the conversation around AI regulation continues, the commission’s commitment to tackling these issues reflects a broader recognition of the challenges posed by rapid technological advancements in the marketplace.
Artificial intelligence tools such as ChatGPT could lead to a “turbocharging” of consumer harms including fraud and scams, and the US government has substantial authority to crack down on AI-driven consumer harms under existing law, members of the Federal Trade Commission said Tuesday.