Artificial intelligence models may violate antitrust laws

Federal Trade Commission (FTC) Chair Lina Khan said Wednesday that companies that train their artificial intelligence (A) models on data from news outlets, artists’ works or people’s personal data could be violating antitrust laws.

At the Wall Street Journal’s “Future of Everything” festival, Khan said the FTC is examining how data theft by large companies could hinder competition or potentially violate people’s privacy rights.

“The FTC Act prohibits unfair methods of competition and unfair or deceptive acts or practices,” Khan said at the event. “So you can imagine that if someone’s content or information is copied and then used to compete with them, drive them out of the market and, in some cases, distract businesses, this could be an unfair method of competition.”

Khan said there are also concerns about companies using people’s data without their knowledge or consent, which could also raise legal questions.

“We’ve also seen big concerns about fraud and dishonesty where companies make one set of claims when you sign up to use them, but then secretly or silently use the data you give them – whether it’s your personal data or if you run a business, your proprietary data, data relevant to competitors – if they then use it to power their models, to compete with you, to abuse your privacy, this could also raise legal questions,” she said.

Khan also noted people’s concerns about companies retroactively changing their terms of service to allow them to use customer content, including personal photos or family videos, for use in their artificial intelligence models.

“I think that’s when people feel a sense of violation, that this isn’t really what they agreed to, and often feel like they have no other choice,” Khan said.

“Some of these services are essential to navigating everyday life,” she continued, “so if the choice – “choice” – that is presented to you is to accept that not only will you be under endless surveillance, but entering data into these models or not using these services at all, I think that’s a really difficult place to put people.”

Khan said she thinks many government agencies have an important role to play as artificial intelligence continues to develop, saying: “I think there’s an increasing recognition in Washington that we can’t, as a government, just stay out of it.” and stand out the way.”

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