NEW YORK — Federal Commerce Fee Chair Lina Khan warned that companies concerned within the speedy progress of synthetic intelligence aren’t working in a regulatory vacuum and could be held accountable by present legal guidelines that defend towards fraud.
Khan, talking throughout a presentation at a Manhattan bookstore Thursday, stated that whereas the know-how is new, corporations want to verify they’re working throughout the regulation.
Khan was requested to elucidate the objectives behind an op-ed in The New York Occasions on Might 3, the place she referred to as for the regulation of generative AI. The know-how has generated a major quantity of worry in latest weeks amid issues it will probably replicate human conduct within the office or be used for fraudulent functions.
The FTC is anxious in regards to the potential for main market incumbents to squeeze opponents of the area, Khan stated through the interview with enterprise capitalist Bradley Tusk.
Underneath Khan’s management the FTC has been on the forefront of holding Large Tech accountable for its capability to incentivize shopper buying, how social media has impacted kids and whether or not main corporations have collected an excessive amount of management over market competitors.
Digital freedom advocates in March urged the FTC to analyze OpenAI concerning ChatGPT and the company has opened an inquiry into competitors within the cloud computing area.
There are fascinating questions in regards to the completely different inputs into AI, Khan stated, and the company must be vigilant in ensuring opponents weren’t compelled out from competing sure functions or fashions.
Knowledge safety greatest practices
The FTC can be making an effort to get corporations to undertake greatest practices for the right way to defend buyer knowledge and reply to knowledge breaches and malicious assaults.
Partially, that features implementing enterprise knowledge safety practices.
The company is working to get corporations to be extra proactive on the entrance finish to guard shopper knowledge earlier than an incident takes place. The company is inserting larger scrutiny on particular person executives to verify they’re accountable for the way their corporations safe buyer knowledge, Khan stated.
Khan highlighted a 2022 case towards Drizly, a web-based liquor market working as a unit of Uber, the place the knowledge of two.5 million clients was uncovered.
Khan, in response to a follow-up query from Cybersecurity Dive, stated she would assist a federal privateness regulation, nonetheless praised the work that particular person states have performed to guard shopper knowledge.
“And so I’d wish to ensure that any federal privateness regulation is a ground somewhat than a ceiling,” Khan stated.

