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FTC warns that AI technology like ChatGPT could ‘turbocharge’ fraud
In a Congressional hearing on Tuesday focused on the Federal Trade Commission’s work to protect American consumers from fraud and other deceptive practices, FTC chair Lina Khan and fellow commissioners warned House representatives of the potential for modern AI technologies, like ChatGPT, to be used to “turbocharge” fraud.
The warning was issued in response to an inquiry over how the Commission was working to protect Americans from unfair practices related to technological advances.
Khan replied by agreeing that AI presented new risks for the FTC to manage, despite the other advantages it may present.
“AI presents a whole set of opportunities, but also presents a whole set of risks,” Khan told the House representatives. “And I think we’ve already seen ways in which it could be used to turbocharge fraud and scams. We’ve been putting market participants on notice that instances in which AI tools are effectively being designed to deceive people can place them on the hook for FTC action,” she stated.
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