US Regulators Say They Already Have Power to Crack Down on AI Misuse, Warn Firms to Comply With Laws

US Government Agencies Take a Stand Against AI Bias

Four federal government agencies have issued a joint statement asserting their power to prevent unlawful bias in algorithms and technologies marketed as artificial intelligence (AI). The statement, released on April 25, highlights the increasing use of AI by both private and public entities to make critical decisions that impact individuals’ rights and opportunities. While AI tools provide technological advancement, they also have the potential to perpetuate unlawful bias, automate unlawful discrimination, and produce other harmful outcomes. The agencies have already taken steps to protect American consumers from some of the negative aspects of increasingly advanced AI, such as abusive use of the technology and repeat offenders’ use of AI technology. They warn that companies already using AI technology must comply with current laws and regulations.

AI Tools Can ‘Turbocharge’ Fraud, Discrimination

The agencies are also looking into ways to prioritize “digital redlining,” in which technology is used to further marginalize or discriminate against specific groups. The Consumer Financial Protection Bureau (CFPB) is working with federal partners to protect homebuyers and homeowners from “algorithmic bias” in home valuations and appraisals. The Justice Department’s Civil Rights Division is committed to investigating, challenging, and combating discrimination based on automated systems. The Federal Trade Commission (FTC) will take action against companies that illegally seek to block new entrants to AI markets. FTC Chair Lina M. Khan warns that AI tools can turbocharge fraud and automate discrimination, and the agency will use the full scope of its legal authorities to protect Americans from these threats.

DHS Forms AI Task Force

The joint statement comes as the Biden administration and lawmakers consider new AI regulations amid an explosion in the use of such technology, most notably OpenAI’s ChatGPT, which can generate human-like conversations and texts. The Department of Homeland Security is forming an AI task force to address the potential risks stemming from AI.