The Federal Trade Commission (FTC) has unanimously approved a streamlined process to investigate cases involving the unlawful use of artificial intelligence (AI). This measure enhances the FTC staff's ability to issue civil investigative demands (CIDs), akin to subpoenas, in AI-related investigations, emphasizing the agency's commitment to addressing potential legal violations in the realm of AI applications. The approval retains the FTC's authority to determine when CIDs are issued and is part of the agency's broader initiative to investigate AI-related cases.
CIDs are crucial tools used by the FTC to gather documents, information, and testimony for advancing consumer protection and competition investigations. The omnibus resolution, effective for ten years, signifies an increased focus on tackling potential legal infractions linked to AI.
In addition to this measure, the FTC's dedication to addressing AI-related challenges is evident. During a September U.S. Senate confirmation hearing, Commissioner Rebecca Slaughter acknowledged the need to focus on challenges like the use of AI to enhance the persuasiveness of phishing emails and robocalls.
While AI has expanded creative capabilities, it has also introduced new challenges. Concerns about the amplification of fraudulent activities, especially through deep fakes, have been raised. According to Sumsub data, fraud attributed to deep fakes more than doubled between 2022 and the first quarter of 2023, with a significant increase in the U.S., from 0.2% to 2.6%.
On Nov. 16, the FTC launched a competition to identify the most effective methods for protecting consumers from fraud and risks associated with voice cloning. Voice cloning technology, propelled by advancements in text-to-speech AI, holds promise for consumers, offering benefits like medical assistance for those who may have lost their voices due to accidents or illnesses.
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