The US Federal Trade Commission (FTC) has recently raised concerns about the potential misuse of emerging generative AI systems, such as ChatGPT and Dall-E 2, and their implications for consumer protection. The FTC, established in 1914 to safeguard consumers against fraud and unfair practices, aims to prevent companies from exploiting these AI technologies to the detriment of consumers. Michael Atleson, an attorney from the FTC Division of Advertising Practices, has shed light on the commission’s reasoning and issued warnings to companies found in violation.

The Unfairness of AI Influence

Atleson emphasizes that generative AI systems have the capacity to influence users’ beliefs, emotions, and behavior. These AI tools, often designed to simulate conversation and understanding, can lead individuals to think they are engaging with impartial entities that are on their side. This creates a potential for harm, especially when combined with automation bias and anthropomorphism. The FTC is concerned that unscrupulous companies may exploit these factors to manipulate consumer choices, deceive them into making harmful decisions, or push particular products or services.

Guardrails for Ethical AI Use

The FTC’s role extends beyond immediate regulation, but it maintains a steadfast stance against companies misusing generative AI technology. The commission warns against the design elements that trick people into harmful choices, as seen in previous actions taken against deceptive financial offers, in-game purchases, and attempts to cancel services. Companies should be cautious when customizing ads using generative AI and disclose any commercial relationships that might bias AI product responses towards specific websites or products. Additionally, Atleson cautions the tech industry against removing personnel dedicated to AI ethics and responsibility, as such actions may negatively impact a company’s ability to convince the FTC of adequate risk assessment and harm mitigation.

The Broader Implications and Industry Response

While the FTC’s immediate focus is on consumer protection, it acknowledges that the issues surrounding generative AI extend beyond its purview. As AI technologies continue to evolve, the FTC’s warnings and concerns serve as a reminder to the tech industry to approach AI development and deployment ethically and responsibly. Transparency, accountability, and considering the potential harms to consumers should be key considerations for companies utilizing generative AI systems.

Twitter’s past experience serves as an example of the consequences a company may face when it neglects AI ethics. The FTC’s message is clear: companies must be mindful of the risks associated with generative AI and take proactive steps to assess and mitigate those risks. By doing so, they can avoid potential legal actions and contribute to the responsible and beneficial use of AI in the marketplace.

Please note that the content provided is generated by an AI language model, and while it strives to be accurate and up-to-date, it may not capture the most recent news events or developments. Sure! Here are some frequently asked questions (FAQs) about the entities mentioned in the content and the information they provide:

1. FAQ: What is the role of the US Federal Trade Commission (FTC)?
Answer: The US Federal Trade Commission is a regulatory agency responsible for protecting consumers from fraudulent and unfair business practices. It enforces the FTC Act, which prohibits practices that cause harm to consumers and competition.
2. FAQ: Who is Michael Atleson and what is his position at the FTC?
Answer: Michael Atleson is an attorney from the FTC Division of Advertising Practices. He is involved in discussing and addressing concerns regarding emerging generative AI systems and their potential violation of the FTC Act.
3. FAQ: What is review hijacking on Amazon listings?
Answer: Review hijacking refers to the fraudulent practice of manipulating product reviews on Amazon listings. It involves tactics such as posting fake positive reviews or suppressing genuine negative reviews to deceive consumers.
4. FAQ: What are some examples of generative AI systems mentioned in the content?
Answer: The content mentions Bing, Bard, and ChatGPT as examples of generative AI systems. These systems are capable of generating human-like text and have been employed in various applications such as negotiation and therapy.
5. FAQ: What consequences did Twitter face from the FTC?
Answer: The content mentions Twitter as an example of a company that learned a lesson the hard way regarding AI ethics. However, specific details about the consequences Twitter faced from the FTC are not provided in the given content.

Please note that the answers provided are based on general knowledge and do not reflect real-time information or specific incidents that may have occurred after the model’s knowledge cutoff in September 2021.