CFPB, Federal Agencies Warn Of Obligations To Avoid Algorithmic Discrimination

On April 24, 2023, the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), Department of Justice (DOJ) and Equal Employment Opportunity Commission (EEOC) released a joint statement affirming that existing law – including those that prohibit discrimination, as well as unfair, deceptive, or abusive acts or practices (UDAAP) – applies to the use of automated systems and innovative new technologies, including artificial intelligence. Acknowledging the greater role of AI today and its potential benefits, such as increasing efficiencies and advancement in many arenas, the agencies suggest that AI may also "perpetuate unlawful bias, automate unlawful discrimination, and produce other harmful outcomes." The agencies "reiterate[d] [their] resolve to monitor the development and use of automated systems and promote responsible innovation" and "pledge[d] to vigorously use [their] collective authorities to protect individuals' rights regardless of whether