FTC Issues Warning to Companies Making Unrealistic AI Claims

The Federal Trade Commission has cautioned businesses against misrepresenting the capabilities of artificial intelligence in their products. In a statement, the Commission noted that AI is a term with multiple definitions and emphasized that it is often used as a marketing buzzword. The FTC warned that some advertisers may be tempted to overuse and misrepresent the term, and provided a set of questions for companies to consider before marketing their AI products. These questions include whether the product's capabilities are being exaggerated, whether it is being compared unfairly to non-AI products, and whether the product actually utilizes AI. The Commission also reminded businesses that it has the expertise to analyze products and determine whether they truly incorporate AI technology. This warning comes as AI is being increasingly used in various industries, including the games industry, where it is being explored for its potential to aid in game development.