On February 27, 2023, the Federal Trade Commission (“FTC”) Division of Advertising Practices updated their business guidance on the usage of Artificial Intelligence (“AI”) for 2023. In their post titled “Keep your AI claim in check”, the FTC guides marketers on how best to legally and efficiently utilize AI in advertising and avoid AI washing. Building upon the FTC’s previous AI guidance of 2020 and 2021, this year’s iteration emphasizes that false or unsubstantiated claims about a product’s efficacy—including those that involve promises about the ability of AI—runs afoul of the FTC Act. Specifically, the FTC reminds marketers of the following questions that they should consider with the increasing use of AI in products:
