An omnibus resolution sanctioning the utilization of compulsory procedures in private investigations concerning products and services leveraging artificial intelligence (AI) or purporting to be AI-driven has gained approval from the Federal Trade Commission.
In investigations linked to AI, this comprehensive resolution will simplify the ability of FTC personnel to issue civil investigative demands (CIDs), akin to subpoenas, while retaining the Commission’s authority to determine the timing of CID issuance. CIDs are issued by the FTC to collect records, data, and evidence that bolster its inquiries into consumer protection and antitrust matters. The federal mandate will remain effective for a decade.
AI encompasses machine-based methodologies capable of making forecasts, recommendations, or decisions that impact real or virtual environments to achieve specific objectives, extending beyond these techniques. AI is also employed to generate synthetic content like images, videos, audio, text, and other digital materials that mimic human creation. Numerous companies currently offer AI-infused products and services, with some asserting the ability to discern content created by such AI.
Despite the myriad beneficial applications of artificial intelligence, including conceptual AI, it can also be exploited for fraudulent activities, deception, privacy infringements, and other illicit practices that may contravene the FTC Act or other regulations. Simultaneously, AI poses challenges in terms of antitrust issues, particularly if a limited number of businesses control the essential technologies or resources underpinning AI.
The Commission unanimously approved the federal resolution authorizing compulsory procedures for AI-related investigations with a 3-0 vote in favor.
Nadine Samter and Ben Halpern-Meekin, both affiliated with the FTC’s Northwest Region division, serve as the key FCC staff members overseeing this matter.
