FTC Says Distorting AI Outputs To Follow State Laws Won't Fly

The statement, titled 'FTC Says Distorting AI Outputs To Follow State Laws Won't Fly', indicates that modifications made solely to satisfy state regulations could violate federal consumer protection laws. The FTC is currently accepting public comments on the proposed statement before it can be finalized.

According to the proposed policy statement, altering AI outputs to meet state bias requirements could mislead consumers about the accuracy or impartiality of the information provided. The FTC specifically called out the practice of 'steering' outputs to conform to legal mandates, which may produce artificial results that do not reflect genuine model performance.

The proposed statement underscores a potential conflict between state-level AI bias regulations and federal consumer protection standards. The FTC's action signals that federal oversight may impose additional constraints on how companies deploy AI systems, even when attempting to follow state directives. The agency's stance could complicate AI governance for firms operating nationally.