As artificial intelligence becomes more widespread, the U.S. Federal Trade Commission (FTC) is asking businesses to be responsible and accurate when they market products as being powered by AI.
The FTC's Warning to Technology Companies Regarding AI Characterization
According to the story by Tech Crunch, while certain products may use AI in some capacity, the FTC points out that AI "is a marketing term" that advertisers could potentially take advantage of it.
The highly-regarded agency is sending out a stern warning to technology companies who use AI in their products to be careful and transparent with their characterization of their products.
The Need for Accuracy to Ensure Proper Claims in AI Technology
They want to ensure that businesses make legitimate, accurate claims when they boast that their products are powered by AI and do not overstate the technology's capabilities.
In the age of AI, the need for accuracy is critical as big tech companies and startups continue to make bold and sweeping claims about the power of their AI-infused products and services. However, these claims often gloss over the details about exactly how AI is powering the technology and what it is capable of.
A Firm Reminder From the FTC: 'Keep Your AI Claims in Check'
The FTC hopes to provide some control and clarity by setting a timeless warning - "keep your AI claims in check." The agency worries that using hype and unverified claims about AI's capabilities can mislead consumers and disrupt markets.
The agency doesn't want businesses to overpromise and underdeliver products, as this could give rise to consumer protection issues. The FTC's warning to marketers of AI-infused products is clear: ensure that the technology sold to consumers provides them with tangible benefits.
Understanding the Limitations of AI: Ensuring Claims and Risks are Accurately Assessed
The FTC strongly advises businesses to use AI responsibly by ensuring that any claims they make are backed up with solid proof and considering any risks associated with using AI. It is also important to understand that just because a product has been "AI-powered" does not necessarily mean it is backed by deep-learning technology.
When making claims about AI, businesses should avoid exaggerating its capabilities. For example, if a marketing team is touting AI-powered features of a product, like reading emotions, it is important to ensure these capabilities are achievable.
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Risk of Using AI and Liability for Unsupported Claims
Similarly, if the product is being marketed as superior to its non-AI variant, the business should have solid proof to support these claims. Failing to provide such proof could result in serious consequences for companies.
In another FTC post, the agency also urges businesses to consider any risk associated with using AI. Companies should reportedly ensure that their products are not discriminatory towards any particular group and work as expected, regardless of who uses them.
Companies should also reportedly avoid claims that products are a "black box" that cannot be understood or tested, as this could open up a company to a great deal of liability.
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