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On December 18, the FTC released a report highlighting key takeaways from its October panel discussion on generative artificial intelligence(AI) and creative industries. As previously covered by InfoBytes, the FTChosteda virtual roundtable to hear directly from creators on how generative AI is affecting their work and livelihood given the FTCs interest in understanding how AI tools impact competition and business practices. The report presents a summary of insights gathered during the roundtable and explains the FTCs particular jurisdictional interest in regulating AI. The report explains that the FTC has brought several recent enforcement actions relating to AI and how the use of AI can potentially violate Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices and unfair methods of competition. Additionally, the report mentioned how President Bidens recent Executive Order on the Safe, Secure and Trustworthy Development and Use of AI (covered by InfoBytes here), encourages the FTC to leverage its existing faculties to protect consumers from harms caused by AI and to ensure competition in the marketplace. The FTCs report explains that it is appropriately taking such actions, both through enforcement actions and by gathering information. The Commission additionally stipulated that training generative AI on protected expression made by a creator without the creators consent or the sale of that generated output could constitute an unfair method of competition or an unfair or deceptive practice. The FTC added that this may be amplified by actions that involve deceiving consumers, improperly using a creators reputation, reducing the value of a creators work, exposing private information, or otherwise causing substantial injury to consumers. The Commission further warned that conduct that may be consistent with other bodies of law nevertheless may violate Section 5.

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FTC report details key takeaways from AI and creative fields panel discussion - JD Supra