Biden administration warns it will crack down on harmful AI business practices

by Ines Kagubare - 04/25/23 4:17 PM ET

FILE - Lina Khan, then a nominee for Commissioner of the Federal Trade Commission (FTC), speaks during a Senate Committee on Commerce, Science, and Transportation confirmation hearing, April 21, 2021 on Capitol Hill in Washington. The federal government will "not hesitate to crack down" on harmful business practices involving artificial intelligence, Federal Trade Commission head Khan warned Tuesday. (Saul Loeb/Pool via AP, File) — FILE – Lina Khan, then a nominee for Commissioner of the Federal Trade Commission (FTC), speaks during a Senate Committee on Commerce, Science, and Transportation confirmation hearing, April 21, 2021 on Capitol Hill in Washington. The federal government will “not hesitate to crack down” on harmful business practices involving artificial intelligence, Federal Trade Commission head Khan warned Tuesday. (Saul Loeb/Pool via AP, File)

U.S. federal agencies announced on Tuesday their intentions to crackdown on automated systems that can cause harmful business practices, including unlawful bias and discrimination.

The agencies, which include the Federal Trade Commission and the Department of Justice, pledged in a joint statement that they will uphold “core principles of fairness, equality, and justice as emerging automated systems… become increasingly common in our daily lives – impacting civil rights, fair competition, consumer protection, and equal opportunity.”

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In the joint statement, the agencies said that although AI can be beneficial in terms of providing insights, breakthroughs, efficiency and lower costs, it also has “the potential to perpetuate unlawful bias, automate unlawful discrimination, and produce other harmful outcomes.”

They added that they will ensure that rapidly evolving automated systems like AI are used in a manner that is consistent with U.S. federal laws.

“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,” said FTC Chair Lina Khan in a statement.

“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.” she added.