https://www.law.com/corpcounsel/2023/07/14/openai-probe-sends-powerful-reminder-to-ai-players-that-regulatory-land-mines-are-everywhere/
Credit: Blue Planet Studio/Adobe StockANALYSIS
“Don’t exaggerate what your AI can do. And what the FTC means by this is that your performance claims have to have scientific support behind them,” artificial intelligence expert Cara Hughes said at a webinar Thursday on the regulatory risks around AI.
July 14, 2023 at 06:51 AM
6 minute read
What You Need to Know
- The FTC has told companies that not understanding how an AI tool works won’t hold up as a defense.
- Companies that build algorithms using consumer information must tell consumers they are doing so.
- A philosophy of transparency will help companies stay in good stead with regulators.
As experts on a panel were holding a webinar Thursday on the potential consumer harms of buzzy artificial intelligence tools, the Washington Post broke news that the Federal Trade Commission is investigating OpenAI, creator of ChatGPT, for possible consumer protection violations.
The development served to underscore a central theme of the Association of E-Discovery Specialists’ webinar: that companies need to be on extreme alert for potential pitfalls.
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