FTC Warns Companies About AI Claims

On February 27, the Federal Trade Commission (FTC) released a blog post advising companies to monitor their claims regarding their use of artificial intelligence (or AI). According to the agency, companies relying (or purporting to rely) on AI can get themselves in trouble with the FTC by exaggerating the claims of their products, overpromising and underdelivering, and not properly accounting for reasonably foreseeable risks to consumers. The FTC's blog on this topic indicates that the agency is closely watching how the developments with the use of this technology play out and that it will not hesitate to use its enforcement authority to penalize conduct it views to be unfair or deceptive.