FTC Chair Lina Khan Shares AI Oversight Plans

The U.S. Federal Trade Commission (FTC) is gearing up to scrutinize the rise of artificial intelligence (AI) technology from various angles, according to FTC Chair Lina Khan. Speaking at TechCrunch’s StrictlyVC event in Washington, D.C., Khan emphasized that the FTC’s objective is not to stifle startups with excessive regulation but to ensure fair competition in the marketplace.

Watch Lina Khan's full speech below.

Ensuring Fair Competition

Khan stressed the importance of maintaining open pathways for commerce. “We want to make sure that the arteries of commerce are open, that the pathways of commerce are open, and if you have a good idea, if you’re able to commercialize it — if there’s interest in the marketplace — that you have a fair shot at competing,” Khan told the audience. “Your fate is tied to the strength of your idea on your business talent, rather than whether you’re threatening one of the big guys who could stomp you out.”

Addressing Potential Harms

While fostering competition, the FTC is also vigilant about the potential harms of AI. Khan highlighted an increase in consumer complaints related to AI technologies, such as voice-cloning fraud. A notable example involved OpenAI, which released and then pulled a ChatGPT voice mimicking actress Scarlett Johansson without her consent. OpenAI claimed it used another voice actress, but the incident underscores the challenges posed by AI.

Comprehensive AI Monitoring

The FTC is monitoring AI developments across the entire technology stack, from chips to cloud infrastructure, models, and downstream applications. “We’re really looking across the stack — so from the chips to the cloud, to the models, to the downstream apps — to try to understand what’s going on in each of these layers,” Khan explained. The agency is also actively seeking input from industry participants to identify both opportunities and risks.

Challenges in Policing AI

Policing AI is not without its challenges. Despite receiving over 600 applications from technologists wanting to work at the FTC, the agency's workforce has not grown proportionately to the economy. Currently, the FTC employs around 1,300 people, 400 fewer than in the 1980s, even though the economy has expanded 15 times over.

Innovative Tactics Against AI Fraud

To combat AI fraud, the FTC is employing innovative tactics. For instance, the agency launched a voice-cloning challenge, inviting the public to propose methods for detecting and monitoring fraudulent voice cloning in real-time. By sourcing ideas from such challenges, the FTC hopes to spur the development of more mechanisms to fight AI fraud.

Openness in AI

Khan also highlighted the importance of genuine openness in AI. She questioned how to ensure that openness is not just a branding exercise but truly reflected in the terms of use. The agency aims to preempt scenarios where technologies initially marketed as open become closed later on, a trend observed during the Web 2.0 era.

Addressing AI Hype

The FTC is also vigilant about AI hype, where the value of AI products may be exaggerated. “Some of these AI tools we think are being used to market, and to kind of inflate and exaggerate, the value of what may be offered. And so we want to make sure that we are policing that,” Khan noted. The FTC has already handled several cases of deceptive advertising related to AI and continues to scrutinize this area.

Summary

The FTC’s comprehensive approach to AI oversight reflects a commitment to fostering fair competition while protecting consumers from potential harms. By monitoring developments across the AI stack, engaging with industry stakeholders, and employing innovative tactics, the FTC aims to navigate the challenges of policing this rapidly evolving technology.