As the landscape of artificial intelligence (AI) continues to evolve, it's crucial for businesses to navigate the Federal Trade Commission's (FTC) stance on AI claims. The FTC's Operation AI Comply is cracking down on companies using AI to deceive consumers. Recent cases involve companies promoting fake reviews, offering "AI Lawyer" services, and promising easy money through AI-powered online storefronts.

It's important to note that claiming to use AI tools without actually doing so can lead to regulatory action. The FTC requires businesses to have a solid basis for any AI-related claims they make. If your product or service falls under specific regulations, such as business opportunities, ensure compliance. Simply using technical terms or touting AI integration doesn't shield you from scrutiny.

In a world where AI advancements are both exciting and risky, transparency and honesty in AI claims are paramount. It's not just about showcasing cutting-edge technology; it's about ensuring that your business practices align with regulatory standards. Be cautious, be truthful, and above all, be compliant when leveraging AI in your operations.

Explore best practices and get more information on how to comply in our recent client alert.