Artificial Intelligence Compliance Operation: Detecting artificial intelligence-based fraud and deceptions

Alvaro Puig, FTC

There is so much hype and excitement about artificial intelligence and all the amazing things it can do or someday do. While some companies develop and sell AI tools, others are showcasing the benefits of integrating it into existing business models. And some businesses aren’t being honest about AI.

With the announcement of Operation AI Compliance, the FTC is cracking down on AI-driven fraud and hoaxes, including so-called “legal advice chatbots,” AI software that allows people to create fake online reviews, and false claims of huge AI-powered profits. is taking drastic measures. business opportunities.

Chatbots, a type of artificial intelligence that generates human-like “answers” in response to a user’s prompt, can be useful in situations where risk is low, such as getting an idea for a new game or coming up with a recipe. However, the AI’s answers may be inaccurate, inadequate, misleading or fabricated. The FTC sued UK-based DoNotPay for claiming its chatbot could act like a “robot lawyer” and produce “iron-clad” legal documents for humans.

Verify the responses you receive from a chatbot by searching online or checking with a reputable source. Also, don’t rely solely on chatbots for medical, legal or financial advice.

Artificial intelligence is also fueling a number of fake online reviews. The FTC says Rytr sold an AI tool that allowed people to create fake online reviews at scale. Be careful when reading online reviews.

And some companies are using AI deception and fake earnings claims to trick people into investing in business opportunities. According to the FTC, these companies include three companies sued by the FTC: Ascend, Ecommerce Empire Builders and FBA Machine.

If you’re considering purchasing a business opportunity, don’t let AI advertising cloud your decision. Ask the seller to provide you with the 1-page disclosure document required by law. If the seller makes a profit claim, he must also provide you with a profit claim statement. And if the seller says anything that contradicts what is written In disclosure documents or earnings statements, this is a sign of a questionable business you’ll want to stay away from.