FTC Commissioner Says Agency Report on AI for Online Harms Did Not Consult Outside Experts

WASHINGTON, June 22, 2022 – Federal Trade Commissioner Noah Phillips said last week that a report by the commission about the use of artificial intelligence to tackle online harms did not consult outside experts as Congress asked.

The FTC’s “Combatting Online Harms through Innovation” report – approved by a 4-1 vote to send to Congress and released on June 16 – warns against using AI as a policy solution for online problems, as the commission says it contains inherent design flaws, bias and discrimination, and features commercial surveillance concerns. The commission concluded that the potential adoption of AI could increase additional harms.

However, the report found that amid the use of AI by Big Tech platforms to address online harms, “lawmakers should consider focusing on developing legal frameworks that would ensure that AI tools do not cause additional harm.”

The one dissenting opinion on the report was from Phillips, who said the FTC did not do the study that was required by Congress. As part of the 2021 Consolidated Appropriations Act, Congress asked the FTC to conduct a study on how artificial intelligence could address online harms such as fake reviews, hate crimes and harassment and child sexual abuse.

“I do not believe we conducted the requisite study, and I do not think the report on AI issued by the Commission takes sufficient care to answer the questions Congress asked,” Phillips said in his dissenting statement.

Phillips said the report mainly focuses on the technology of AI itself and lacks the outside perspective from individuals and companies who use AI and try to combat the harms of AI online, which he said is “precisely what Congress asked us to evaluate.”

Phillips added that in the 12 months the FTC was given to complete this study, “rather than use this time to solicit input from all relevant stakeholders, the Commission chose to conduct a kind of literature review.

Phillips said in his statement he would have liked to see interviews of market participants or surveys conducted, which allegedly isn’t included in the recent report and adds that he is instead concerned about the “quantity of self-reference” used by the FTC in the report.

“Still, we should at least endeavor to produce a report that reflects the full diversity of experiences and viewpoints on these important issues concerning AI.” Phillips also noted the report doesn’t include a serious cost-benefit analysis of using AI to combat online harms.