The Federal Trade Commission (FTC) Division of Advertising Practices recently updated their business guidance on the usage of Artificial Intelligence (AI) for 2023. The post titled “Keep your AI claim in check” provides marketers with guidance on how to legally and efficiently utilize AI in advertising and avoid AI washing. The FTC emphasizes that false or unsubstantiated claims about a product’s efficacy, including those that involve promises about the ability of AI, are in violation of the FTC Act. This update builds on the Commission’s 2020 and 2021 AI guidance, which focused on the ethical usage of AI and algorithms and transparency with consumers.
