United States of America: Published FTC Advice on Artificial Intelligence Claims

On 27 February 2023, the US Federal Trade Commission (FTC) published a guidance for advertisers to monitor their claims on the abilities and benefits of artificial intelligence (AI) on new tools and devices. The FTC clarifies that claims regarding AI performance could be deceptive if they lack scientific support or if they apply only to certain types of users or under certain conditions. The FTC also advises advertisers to avoid promoting that an AI product does something better than a non-AI product unless there is adequate proof for that kind of comparative claim. Furthermore, advertisers are responsible for foreseeable risks and the impact of an AI product in the market and cannot transfer their responsibility to a third-party developer of the technology. Finally, the FTC advises advertisers to confirm whether a product actually uses AI a product as AI-powered, noting that merely using an AI tool in the development process is not the same as a product having AI in active use.