The Federal Trade Commission (FTC) has recently taken a closer look at the use of artificial intelligence (AI) in marketing and ecommerce, outlining what constitutes fraudulent AI use and addressing a specific case involving a fraud claim related to AI usage. With the rapid growth of AI-based products and services, marketers are facing increasing complexity in identifying and managing fraud risks associated with AI.
One of the key concerns raised by the FTC is the ethical implications of AI strategies used by marketers. Marketers must consider the potential impact of their AI-based offerings on customer trust and compliance. The FTC has outlined four key questions to examine the validity of AI-based solutions, including whether marketers are exaggerating the capabilities of their AI products and whether they are aware of the risks involved.
A recent case involving three business coaches settled by the FTC highlights the risks of not delivering AI-based experiences as promised. The coaches deceived clients with unfounded promises of increased earnings through AI-powered services, resulting in a settlement requiring them to return nearly $21 million in assets.
To navigate the ethical challenges of AI in marketing, marketers should ask themselves five key questions, including what social aspects of an AI feature should be the algorithms’ responsibility and how to ensure AI does not perpetuate discriminatory practices. By addressing these questions, marketers can uphold ethical customer experiences and ensure that AI-based offerings deliver on their promises.
In conclusion, as AI continues to play a significant role in marketing technology, marketers must prioritize ethical considerations to build trust with customers and avoid potential legal issues. By proactively addressing the ethical implications of their AI strategies, marketers can ensure that their AI-based offerings meet customer expectations and comply with regulatory standards.