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FTC Issues Warning to Tech Companies: Avoid Exaggerated AI Claims

The growth of artificial intelligence (AI) hype has been soaring in recent weeks, prompting the Federal Trade Commission (FTC) to issue a warning to tech companies to avoid making unsubstantiated claims about AI. Michael Atleson, an attorney in the division of advertising practices, stressed the importance of not exaggerating the capabilities of the product, or making false claims about the efficacy of a product. Atleson further warned tech companies that the FTC will use its in-house technologists to investigate claims beyond marketing materials. This is part of the FTC’s renewed focus on high tech companies, as the agency recently launched an office of technology and plans to increase the number of technologists on staff. The FTC’s warning is a welcome one for technology buyers, as it helps reduce the risk of investing in a solution that doesn't effectively use AI. Companies should ensure that their products are accurately represented in terms of their AI capabilities, and take steps to ensure they are aware of the risks associated with AI technology. This is particularly important in a time when AI technology is becoming increasingly popular and companies are eager to capitalise on the hype. With the FTC stepping in to examine claims, buyers can be more confident that they are investing in a solution that actually uses AI as promised.

Originally reported by Martech:
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