The Biden administration is cautioning businesses and financial institutions that its federal agencies have the power to take action against civil rights breaches and other forms of bias that are committed using artificial intelligence.
The warning comes amid growing concern over the widespread use of cutting-edge technology in daily life and its potential effects on civil rights, fair competition, and consumer protection. It was issued by the four federal agencies of the Department of Justice, Consumer Financial Protection Bureau, Federal Trade Commission, and Equal Employment Opportunity Commission.
The warning comes as lawmakers write laws for a new regulatory framework for AI. The four agencies have already expressed alarm about the illicit uses of the quickly developing technology.
In a joint statement released on Tuesday, they claimed that while automated systems are frequently touted as offering cost savings and other advantages, their use also has the potential to reinforce illegal bias, facilitate illegal discrimination, and have other negative effects.
The federal agencies stated in their warning that they are equipped with legal means to counteract the detrimental use of automated systems and that they take seriously their duty to make sure the use of AI complies with federal regulations.
They already understand how artificial intelligence (AI) tools can accelerate fraud and automate prejudice, and they won’t hesitate to utilize the full extent of their legal authority to defend Americans from these dangers, according to FTC Chair Lina Khan.
The laws currently in existence do not exempt artificial intelligence, and the FTC will aggressively enforce them to stop unfair or misleading practices and unfair business practices.
The agencies explained that automated systems may use unbalanced or unrepresentative datasets or datasets that incorporate historical bias, as well as systems developed by developers on false assumptions about its users, context, or underlying practices, to create potentially discriminatory outcomes. A lack of transparency and the difficulty to determine whether the system is operating impartially are caused by the internal workings of the system not always being made public.
Social media platforms, banks, landlords, employers, and other companies that use AI and algorithms to make choices have been cautioned by Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division that her office is prepared to hold them accountable if they break any laws.
She added in a statement that the Justice Department will continue to collaborate with its government partners to look into, challenge, and fight discrimination based on automated systems.
About two weeks ago, Senate Majority Leader Chuck Schumer, a Democrat from New York, announced the beginning of an initiative to regulate artificial intelligence (AI) to make sure that the United States stays ahead of China in determining how the technology looks.
