Federal Commerce Fee (FTC) Chair Lina Khan has raised issues concerning the potential misuse of AI by airways to cost greater costs for passengers attending funerals.
What Occurred: Talking on the 2024 Quick Firm Innovation Pageant, Khan highlighted the dangers AI poses in enabling fraud and value discrimination. She emphasised that AI instruments are accelerating scams and permitting customized pricing based mostly on client information, Enterprise Insider reported on Wednesday.
Khan defined that AI is already automating conventional on-line scams like phishing and introducing new frauds equivalent to voice cloning. She additionally warned about retailers utilizing AI-driven surveillance know-how to regulate costs for particular buyers.
The FTC is investigating AI’s position in value discrimination, which differs from dynamic pricing which adjusts costs based mostly on market circumstances. Khan famous that AI might result in different costs based mostly on private information collected by digital corporations.
She offered examples, equivalent to individuals with nut allergic reactions being charged extra for granola bars or eating places utilizing QR codes for customized menus.
“Or any person being charged extra for an airplane ticket as a result of the corporate is aware of that they simply had a loss of life within the household and have to fly throughout the nation,” Khan mentioned.
In July, the FTC issued a market inquiry to eight corporations to offer data on “surveillance pricing services and products” that use client information. Khan burdened the significance of analyzing this follow to find out its affect on shoppers.
Khan concluded by questioning whether or not society desires to just accept such focused pricing or implement laws to stop it. She additionally famous that dynamic pricing in areas like ride-sharing has made individuals extra accustomed to variable pricing.
See Additionally: Putin Ally Who Unveiled Tesla Cybertruck With Machine Gun Final Month Now Says Elon Musk ‘Remotely Disabled’ The Militarized EV
Why It Issues: The issues raised by Khan about AI-driven value discrimination come amid broader scrutiny of tech corporations’ information practices.
Final week, the FTC criticized main tech companies like Amazon.com Inc. and Meta Platforms Inc. for his or her in depth information assortment and monetization practices, which pose important privateness dangers to shoppers.
Furthermore, in December CNBC’s “Mad Cash” host Jim Cramer criticized Khan’s insurance policies, arguing that her stance on mergers and acquisitions is negatively impacting investor returns. Cramer referred to her as a “one-woman wrecking crew” for inventory portfolios, highlighting the strain between regulatory oversight and market efficiency.
Moreover, in July 2023, Elon Musk accused Khan of bias and overreach within the FTC’s privateness investigation into Twitter (Now often called X). Musk’s allegations underscore the contentious relationship between the FTC and tech giants, as they navigate the advanced panorama of knowledge privateness and client safety.
In April, Apple Inc. was referred to as out by Jon Stewart for allegedly blocking an interview with Khan on his podcast. This incident highlights the continued antitrust investigations into Apple’s enterprise practices and market dominance.
Learn Subsequent:
Picture Through Shutterstock
This story was generated utilizing Benzinga Neuro and edited by Kaustubh Bagalkote
Market Information and Knowledge delivered to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
