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Home»National»FTC chair Lina Khan warns AI may ‘turbocharge’ fraud and scams
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FTC chair Lina Khan warns AI may ‘turbocharge’ fraud and scams

Buzzin DailyBy Buzzin DailyJuly 4, 2025No Comments2 Mins Read
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FTC chair Lina Khan warns AI may ‘turbocharge’ fraud and scams
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Washington
CNN
 — 

Synthetic intelligence instruments reminiscent of ChatGPT may result in a “turbocharging” of client harms together with fraud and scams, and the US authorities has substantial authority to crack down on AI-driven client harms beneath current legislation, members of the Federal Commerce Fee mentioned Tuesday.

Addressing Home lawmakers, FTC chair Lina Khan mentioned the “turbocharging of fraud and scams that might be enabled by these instruments are a critical concern.”

In current months, a brand new crop of AI instruments have gained consideration for his or her skill to generate convincing emails, tales and essays in addition to photographs, audio and movies. Whereas these instruments have potential to vary the best way folks work and create, some have additionally raised considerations about how they might be use to deceive by impersonating people.

At the same time as policymakers throughout the federal authorities debate promote particular AI guidelines, citing considerations about attainable algorithmic discrimination and privateness points, corporations may nonetheless face FTC investigations in the present day beneath a spread of statutes which were on the books for years, Khan and her fellow commissioners mentioned.

“All through the FTC’s historical past we’ve needed to adapt our enforcement to altering know-how,” mentioned FTC Commissioners Rebecca Slaughter. “Our obligation is to do what we’ve at all times carried out, which is to use the instruments we’ve to those altering applied sciences … [and] not be scared off by this concept that it is a new, revolutionary know-how.”

FTC Commissioner Alvaro Bedoya mentioned corporations can’t escape legal responsibility just by claiming that their algorithms are a black field.

“Our workers has been constantly saying our unfair and misleading practices authority applies, our civil rights legal guidelines, truthful credit score, Equal Credit score Alternative Act, these apply,” mentioned Bedoya. “There may be legislation, and firms might want to abide by it.”

The FTC has beforehand issued intensive public steerage to AI corporations, and the company final month acquired a request to research OpenAI over claims that the corporate behind ChatGPT has misled shoppers concerning the instrument’s capabilities and limitations.

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