The Federal Trade Commission announced Tuesday a new law enforcement effort called Operation AI Comply. As part of the sweep, it took action against multiple companies that used artificial intelligence to “supercharge” deceptive products and services.
The cases involved AI-generated fake reviews, “the world’s first robot lawyer,” and online storefront schemes.
The FTC said in a statement that consumers lost tens of millions of dollars, lured by the promise that AI-enabled problem-solving and automation would save them time, money, and, in the e-commerce cases, lead to increased earnings.
Ultimately, the companies didn’t deliver on their claims, and knew they were deceiving customers.
“Using AI tools to trick, mislead, or defraud people is illegal,” said Lina M. Khan, the agency’s chair. “The FTC’s enforcement actions make clear that there is no AI exemption from the laws on the books.”
The FTC’s complaint against Rytr, the company that offered the AI writing service, describes how subscribers could generate effectively fake reviews …