over whether its products have violated consumer protection or data privacy laws and threatening to fine the company.
Lyon says that after the FTC takes action like it did with OpenAI, sometimes state attorneys general also become interested because they have similar state consumer protection laws they can invoke for privacy and data security, too. and Facebook parent Meta earlier this week for allegedly using their content without permission to train chatbots."In our U.S. legal system where you've got court decisions sort of making rules, effectively, and the regulators like the FTC having enforcement actions that sort of de facto make rules, and then the legislation separately from that," Lyon told.
Lyon noted the European Union is racing ahead with an AI act, which has to be on the radar of American AI firms because it has become increasingly difficult for U.S. companies to avoid beingif they do business in any of the member countries or offer services to their citizens.
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