The FTC Enters New Chapter in its Approach to Artificial Intelligence and Enforcement

Emerging from the FTC’s recent decision to set aside the Rytr Order, the agency has staked out a dual approach to regulation of AI: Reduced and in some cases revoked enforcement related to the actual capabilities of AI products — even in cases where the AI could potentially be used to trick consumers — but continued enforcement related to false statements companies make about the capabilities of their AI products. Partner Margaret Krawiec, counsel Todd Kelly and associate Chelsea Cooper discuss how this evolving enforcement landscape signals that, though the enforcement path may be narrower, the commission does not intend to ignore AI companies and products in their entirety.