Consumers could end up paying the (personalized) price as AI becomes more popular, FTC Chair Lina Khan recently warned.
At the 2024 Fast Company Innovation Festival, Khan said that although AI may be beneficial, it’s already becoming some of the FTC’s “bread and butter fraud work.”
“Some of these AI tools are turbocharging that fraud because they allow some of these scams to be disseminated much more quickly, much more cheaply, and on a much broader scale,” she said.
AI is already helping automate classic online scams like phishing and even introducing new, alarming frauds like voice cloning that can target unsuspecting consumers.
But Khan also took the opportunity to talk about a different way AI could be used to target consumers: retailers using surveillance technology and customer data to change the prices they offer to specific shoppers. Khan said the FTC is looking into AI’s potential role in increasing the risk of price discrimination.
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You don’t need AI for that. Collecting personal data and dynamic pricing has been going on for at least 10 years.
She specifically said that the new tech would “increase” and “turbocharge” fraud. She did not use that example as some new kind of fraud, only that it could be done more effectively or more easily.