News and Analysis of Artificial Intelligence Technology Legal Issues
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FTC Orders AI Company to Delete its Model Following Consumer Protection Law Violation

The nation’s consumer protection watchdog–the Federal Trade Commission (FTC)–took extraordinary law enforcement measures on January 11, 2021, after finding an artificial intelligence company had deceived customers about its data collection and use practices. In a first of its kind settlement involving facial recognition surveillance systems, the FTC ordered Everalbum, Inc., the now shuttered maker of the “Ever” photo album app and related website, to delete or destroy any machine learning and other models or algorithms developed in whole or in part using biometric information it unlawfully collected from users, along with the biometric data itself. In doing so, the agency…

Equality for minority

Eliminating Structural Bias in Data-Based Technologies: A Path Forward

As national protests over systemic and structural racism in America continue, community organizers, Black scholars, and others fighting injustice and unequal treatment are once again raising awareness of a long-standing problem lurking within artificial intelligence data-based technologies: bias. The campaign to root out bias–or eliminate biased systems altogether–has been amplified in recent weeks in the wake of reports of a black Michigan man who was apparently arrested solely on the misidentification decision of a facial recognition system used by law enforcement.  Criminal charges against the man were dropped by police only after they discovered their error, but by then the…

Order from chaos

Artificial Intelligence, Risk Disclosures, and a New SEC Materiality Test

When Microsoft shared in 2018 that certain “deficiencies” surrounding its artificial intelligence practices could “subject[] us to competitive harm, legal liability, and brand or reputational harm,” it set the stage for other companies to self-report perceived risks associated with developing, using and producing AI technologies. Disclosing risks–a Securities and Exchange Commission (SEC) requirement imposed on public companies since 2005–raises a number of important considerations for both public as well as private companies, including transparency, accuracy, and the degree of speculation that may be acceptable when discussing AI impacts.  Although companies in industry segments other than AI face similar concerns, AI…