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US FTC leaders will target AI that violates civil rights or is deceptive

Published by Uma Rajagopal

Posted on April 19, 2023

2 min read

· Last updated: February 1, 2026

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FTC leaders discuss AI regulation addressing civil rights violations - Global Banking & Finance Review
U.S. FTC leaders, including Chair Lina Khan, emphasize the need to regulate AI technologies that could violate civil rights or mislead consumers. This image captures a congressional hearing on AI's impact on deception and discrimination.
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US FTC leaders will target AI that violates civil rights or is deceptive WASHINGTON (Reuters) – Leaders of the U.S. Federal Trade Commission said on Tuesday the agency would pursue companies who misuse artificial intelligence to violate laws against discrimination or be deceptive. The sudden popularity of Microsoft-backed OpenAI’s ChatGPT this year has prompted calls […]

US FTC leaders will target AI that violates civil rights or is deceptive

WASHINGTON (Reuters) – Leaders of the U.S. Federal Trade Commission said on Tuesday the agency would pursue companies who misuse artificial intelligence to violate laws against discrimination or be deceptive.

The sudden popularity of Microsoft-backed OpenAI’s ChatGPT this year has prompted calls for regulation amid concerns around the world about the possible use of the innovation for wrongdoing even as companies are seeking ways to use it to enhance efficiency.

In a congressional hearing, FTC Chair Lina Khan and Commissioners Rebecca Slaughter and Alvaro Bedoya were asked about concerns that recent innovation in artificial intelligence, which can be used to produce high quality deep fakes, could be used to make more effective scams or otherwise violate laws.

Bedoya said companies using algorithms or artificial intelligence were not allowed to violate civil rights laws or break rules against unfair and deceptive acts.

“It’s not okay to say that your algorithm is a black box” and you can’t explain it, he said.

Khan agreed the newest versions of AI could be used to turbocharge fraud and scams and any wrongdoing would “should put them on the hook for FTC action.”

Slaughter noted that the agency had throughout its 100 year history had to adapt to changing technologies and indicated that adapting to ChatGPT and other artificial intelligence tools were no different.

The commission is organized to have five members but currently has three, all of whom are Democrats.

(Reporting by Diane Bartz; Editing by Marguerita Choy)

Frequently Asked Questions

What is Artificial Intelligence?
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It encompasses various technologies, including machine learning and natural language processing.
What is compliance?
Compliance refers to the process of adhering to laws, regulations, and guidelines set by governing bodies. In finance, it ensures that companies operate within legal frameworks to prevent fraud and protect consumer rights.
What is discrimination in finance?
Discrimination in finance occurs when individuals are treated unfairly based on characteristics such as race, gender, or age, affecting their access to financial services, loans, or credit.
What are deep fakes?
Deep fakes are synthetic media in which a person's likeness is replaced with someone else's using artificial intelligence. They can be used to create misleading videos or images, raising concerns about misinformation.
What is a congressional hearing?
A congressional hearing is a formal meeting or session held by a legislative body, such as the U.S. Congress, to gather information, discuss issues, or investigate matters of public concern.

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