Khan: 'Claims of innovation must not be cover for lawbreaking' with AI

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Federal Trade Commission Chair Lina M. Khan warned against the potential threats from AI. | Federal Trade Commission

Khan: 'Claims of innovation must not be cover for lawbreaking' with AI

Federal Trade Commission Chair Lina M. Khan, alongside officials from three other federal agencies, jointly pledged to remain committed to defending fairness, equality and justice in the face of the rising popularity and influence of artificial intelligence.

She noted, as these automated systems become more common in our daily lives, could impact civil rights, fair competition, consumer protection and equal opportunity, according to an April 25 FTC news release.

“We already see how AI tools can turbocharge fraud and automate discrimination, and we won’t hesitate to use the full scope of our legal authorities to protect Americans from these threats,” Khan said in the release. “Technological advances can deliver critical innovation — but claims of innovation must not be cover for lawbreaking. There is no AI exemption to the laws on the books, and the FTC will vigorously enforce the law to combat unfair or deceptive practices or unfair methods of competition.”

Khan was joined by Consumer Financial Protection Bureau Director Rohit Chopra, U.S. Justice Department Civil Rights Division Assistant Attorney General Kristen Clarke and Equal Employment Opportunity Commission Chair Charlotte A. Burrows, according to the joint statement.

"Private and public entities use these systems to make critical decisions that impact individuals’ rights and opportunities, including fair and equal access to a job, housing, credit opportunities and other goods and services," the statement said. "These automated systems are often advertised as providing insights and breakthroughs, increasing efficiencies and cost-savings and modernizing existing practices. Although many of these tools offer the promise of advancement, their use also has the potential to perpetuate unlawful bias, automate unlawful discrimination and produce other harmful outcomes."

The agency representatives made a series of recommendations on how to prevent bias and discrimination from AI, which include ensuring AI is designed to be fair and unbiased; validating the accuracy and predictive capabilities of AI models; ensuring any and all data used to train AI is free from bias; ensuring the transparency of and understandable logic behind AI decision-making; and strengthening accountability and monitoring for potential discrimination in AI systems, the release said.

The joint statement also stresses the need for employers, AI developers and regulators to work together to ensure the use of AI in employment decisions doesn't lead to employee and hiring discrimination, according to the release.

“Technology marketed as AI has spread to every corner of the economy, and regulators need to stay ahead of its growth to prevent discriminatory outcomes that threaten families’ financial stability,” Chopra said in an EOOC news release. “Today’s joint statement makes it clear that the CFPB will work with its partner enforcement agencies to root out discrimination caused by any tool or system that enables unlawful decision making."