FTC Warns Companies Regarding AI Capabilities Claims. (Image credit- Tech Times)
The US Federal Trade Commission (FTC) is urging companies to be accountable and truthful when marketing goods as being powered by AI as the technology spreads.
The FTC emphasizes that AI “is a marketing term” that advertisers could possibly exploit, even though some products may use AI in some capacity.
The reputable agency is issuing a strong caution to technology companies using AI in their products to be cautious and truthful with their product characterization.
When companies brag that their products are powered by AI, they want to make sure that they are making true, accurate claims and not exaggerating the benefits.
As large tech companies and startups continue to make grandiose claims about the power of their AI-infused products and services, accuracy is becoming increasingly important in the era of AI. These assertions, however, frequently omit the specifics of how AI is driving the technology and what it is capable of. The agency is concerned that overstating AI’s capabilities will mislead customers and cause markets to collapse.
The organization doesn’t want companies to overpromise and underdeliver goods because this could lead to problems with customer protection. The FTC has issued a clear caution to manufacturers of products with artificial intelligence (AI).
As large tech companies and startups continue to make grandiose claims about the power of their AI-infused products and services, accuracy is becoming increasingly important in the era of AI.
The FTC urges companies to use AI responsibly by ensuring that any promises they make are supported by credible evidence and taking into account any potential risks. It’s crucial to realize that a product is not inherently supported by deep learning technology just because it has been “AI-powered.”
Businesses should refrain from inflated statements about AI’s potential. For instance, it’s crucial to make sure that a product’s AI-powered features—like the ability to sense emotions—are actually possible.
Similarly to this, the company should have strong evidence to back up any claims that the product is better than its non-AI counterpart. For businesses, failing to provide this proof could have severe repercussions.
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The FTC also advises businesses to think about any risk connected to using AI in another blog article. Regardless of who uses them, businesses are allegedly required to make sure that their products do not discriminate against any specific group and function as intended.
A business may be exposed to a lot of liability if it makes the claim that its products are a “black box” that cannot be understood or tested.