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FTC Wants Tech Companies To Keep AI Claims In Check


  • The FTC warns companies against making false or exaggerated claims about products powered by artificial intelligence (AI) for marketing purposes.
  • It recommends companies not make claims that are unsubstantiated and should disclose any reasonably foreseeable risks.
  • The FTC also emphasizes that products must be genuinely powered by AI, not just using AI to fix one aspect of the product.


The FTC has issued a new warning to companies throwing about AI claims to keep them in check or risk running into trouble with the commission.


With the rise of interest in AI and products powered by it, it is becoming clearer that many companies could be jumping on the bandwagon to appear up-to-date and relevant.


The FTC says that terms like “powered by artificial intelligence” are mainly for marketing and as it is with all “hot marketing terms”, some advertisers may find themselves overusing or abusing them.


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Making false or unsubstantiated claims about AI and products may lead companies into a head-on collision with the federal agency, which has had years of practice in checkmating false advertising.


FTC Wants Tech Companies To Keep AI Claims In Check


Some pointers that the FTC wants companies to use when advertising about AI-powered products or services includes not exaggerating what they offer. Otherwise, you could quickly find yourself making claims that rival that of Theranos fictional single prick all-test kit.


Also, the commission says that companies should not claim that their products can perform better than other products that don’t relay on AI, unless they have proof.


Then, there is the issue of “reasonably foreseeable risks” which can impact how your product performs in the hands of others or beyond a particular scope. According to the FTC, you should always let potential customers know of the limits of your product. “And you can’t say you’re not responsible because that technology is a ‘black box’ you can’t understand or didn’t know how to test,” the commission said.


Finally, and most importantly, is the claim true? AI-powered products must be powered by artificial intelligence as the FTC doesn’t agree that using AI to fix one aspect of it is the same as it being powered by the trendy tech.


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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.