Source: Federal Trade Commission

The Federal Trade Commission (FTC) report explores the potential risks that artificial intelligence (AI) poses to consumers, including misinformation, discriminatory practices, and data misuse. The analysis highlights examples where AI tools have misled consumers, from biased algorithms in lending to deceptive advertising claims about AI capabilities.

The FTC emphasizes the need for businesses to ensure transparency, fairness, and accountability when deploying AI technologies. Recommendations include routine audits, enhanced data protection measures, and clearer labeling of AI-driven services. The report also signals the FTC’s intent to ramp up enforcement actions against companies that engage in harmful AI practices, setting the stage for more robust consumer protections.