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FTC Regulatory Action & AI: Expert Panelists Discuss Implications and Potential Future Activities

As more and more businesses across a wide range of activities and specialties tout their AI-based capabilities – the FTC commenced an investigation of OpenAI, parent company of ChatGPT.

While it can be tempting to shout AI-enabled solutions from the marketing rooftops, a recent Association of Certified E-Discovery Specialists (ACEDS) webinar discussed potential pitfalls companies need to be aware of and outlined several cases that illustrate the need for transparency with consumers.

As reported by, the webinar, moderated by eDiscovery Today editor Doug Austin and featuring Cara Hughes, Senior Vice President of Business Development at UnitedLex and Mercedes Kelley Tunstall, Partner at Cadwalader, Wickersham & Taft LLP, came on the heels of news that the FTC opened an investigation into OpenAI, creator of the popular ChatGPT chatbot.

Hughes discussed several cases that illustrate the need for companies to not only understand the limits of AI-solutions as they bring them to market, but to clearly and openly communicate if consumer data is being used to build AI products. “You cannot train your algorithms or develop your products off of your customers without telling them that you’re doing so,” she said.

Commenting on the cases discussed in the webinar, Tunstall agreed, stating, “All of these cases, kind of focus on this concept of AI using customer information and impacting consumers unfairly. And the FTC absolutely has the tools that they need, legally, to go after that kind of thing. And that’s their main way of addressing this lack of transparency.”

Read the full article here.

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