FTC Report Highlights Creative Professionals’ Concerns Over Generative AI

Artificial intelligence© koyu / Getty Images / Canva

In a new report, the Federal Trade Commission (FTC) has outlined key concerns from creative professionals about the use of generative artificial intelligence (AI) in their fields. The report follows an October 2023 public virtual roundtable that included artists, writers, actors, musicians, and other creatives who discussed the impact of AI tools that can generate text, images, and audio on command.

While these professionals acknowledged potential benefits of AI in aiding their work, they also raised significant concerns about privacy, consent, competition, and authenticity.

One major concern was the collection and use of their past work without consent or awareness to train generative AI models. Participants argued that AI developers sometimes use broad interpretations of prior contractual agreements to justify this practice.

Adding to the complexity, participants expressed worry about nondisclosure by AI developers. Many creatives might not even be aware that their works are being used because AI developers often do not publicly disclose what works have been included in their training data.

Generative AI’s increasing presence in creative spaces was another cause for concern. Participants noted that AI-generated outputs are starting to appear in venues where creative professionals vie for work, making it harder for consumers and potential publishers to find human-made work.

Participants also voiced apprehensions about style mimicry by generative AI tools. These technologies can mimic unique styles, brands, voices, and likenesses, enabling strangers and former clients to create knockoffs, including synthetic voices and images.

Another alarming trend cited was the use of generative AI to create fake endorsements. Participants reported instances of AI being used to generate false depictions of artists selling products they never endorsed or being used to generate offensive content using cloned voices.

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While some companies have started allowing artists to opt out of having their work used by AI, participants argued that this approach places the burden on creators to police a rapidly changing marketplace. They also noted that opt-out options would only address future uses and would be challenging to implement given the lack of transparency by AI developers. Instead, participants advocated for an opt-in approach, giving artists control over whether they want their work used for generative AI.

The FTC staff report recognized that many of the concerns raised were beyond the Commission’s jurisdiction. Nevertheless, it proposed that targeted enforcement under the FTC’s existing authority in AI-related markets could protect fair competition and prevent unfair or deceptive acts or practices. The report committed the FTC to monitoring the generative AI industry closely, pledging vigilance and readiness to use its law enforcement and policy tools to foster fair competition, protect consumers, and ensure public benefits from this transformative technology.

The Commission unanimously voted 3-0 to issue the staff report. The lead staffers on the report were Madeleine Varner, Jessica Colnago, and Stephanie Nguyen.

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