FTC to Enforce New AI Regulations Proposed by Democrats to Combat Discrimination

A dozen Democratic senators have proposed new regulations on artificial intelligence (AI) to address and curb discrimination. These regulations would focus on automated tools that impact decisions related to employment, education, housing, and other areas.

The proposed legislation, known as the Algorithmic Accountability Act of 2023, would task the Federal Trade Commission (FTC) with creating AI regulations and allocate additional funding for the agency to hire 75 employees for enforcement purposes.

Sens. Ron Wyden and Cory Booker are the lead sponsors of the bill, expressing concerns that AI tools are already contributing to discrimination in various domains, including education, employment, healthcare, and housing.

“Our bill will pull back the curtain on these systems to require ongoing testing to make sure artificial intelligence that is responsible for critical decisions actually works, and doesn’t amplify bias based on where a person lives, where they go to church, or the color of their skin,” said Mr. Wyden, a Democrat from Oregon.

Mr. Booker, a Democrat from New Jersey, added that automated tools currently underestimate the needs of Black patients in hospitals and discriminate against women and minorities in employment decisions.

Rather than relying on existing anti-discrimination policies, the senators believe that the FTC should address the concerns associated with AI. They propose that companies be required to assess the impact of applying AI to their work and that the FTC develop rules concerning these assessments.

Sen. Elizabeth Warren, a Democrat from Massachusetts and co-sponsor of the bill, stated, “This bill will help ensure greater transparency on the impacts of algorithms, and it will empower the FTC to better protect consumers.”

Despite these efforts, some GOP lawmakers are skeptical of the FTC’s ability to address these issues, and certain Republicans question the necessity of imposing new laws to regulate AI.

Sen. Ted Cruz, a Republican from Texas, wrote to FTC Chair Lina Khan expressing concern about the agency’s plans to aggressively monitor AI for discrimination and misinformation. He also argued that fears of an AI doomsday are being used as a basis for expanding federal regulations.

In written remarks, Mr. Cruz emphasized that Congress itself poses the biggest existential risk when it comes to AI, suggesting that lawmakers should be cautious in their approach to regulation.

While President Biden’s administration prepares an executive order to address AI concerns, Senate Majority Leader Charles E. Schumer and House Speaker Kevin McCarthy have discussed potential AI legislation but caution against rushing the process.

Companion legislation to the proposed AI bill has been introduced in the House by Rep. Yvette Clarke, a Democrat from New York.

Overall, these proposed regulations and discussions within Congress indicate a growing recognition of the importance of addressing discrimination issues associated with AI and promoting transparency and accountability in its use.