FTC warns the AI industry: Don't discriminate, or else

The U.S. Federal Trade Commission just fired a shot across the bow of the artificial intelligence industry. On April 19, 2021, a staff attorney at the agency, which serves as the nation's leading consumer protection authority, wrote a blog post about biased AI algorithms that included a blunt warning: "Keep in mind that if you don't hold yourself accountable, the FTC may do it for you." The post, titled "Aiming for truth, fairness, and equity in your company's use of AI," was notable for its tough and specific rhetoric about discriminatory AI. The author observed that the commission's authority to prohibit unfair and deceptive practices "would include the sale or use of – for example – racially biased algorithms" and that industry exaggerations regarding the capability of AI to make fair or unbiased hiring decisions could result in "deception, discrimination – and an FTC law enforcement action." Bias seems to pervade the AI industry.