In a Feb. 27, 2023  blog post, the Federal Trade Commission (FTC) warned marketers against making false and unsubstantiated claims about their artificial intelligence (AI)-powered products or else they could face FTC enforcement. While prior FTC AI guidance focused on not utilizing automated tools that have biased or discriminatory impacts, the new post emphasizes that AI tools also must “work as advertised.” The FTC warns marketers against exploiting consumers that may be primed by common “themes of magic and science” to believe unfounded claims about AI-powered products.

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