Massachusetts AG Advises on AI Laws and Regulations

In a move signaling increased scrutiny over automated technologies, the Massachusetts Attorney General released a comprehensive advisory aimed at ensuring businesses deploying artificial intelligence (AI) adhere to the Commonwealth’s existing consumer protection, civil rights, and data privacy laws. Dated April 16, 2024, the document serves as a warning and a guideline to businesses using AI and algorithmic decision-making systems, underscoring their accountability under the law.

The Attorney General’s office acknowledges the potential that artificial intelligence holds for innovation and efficiency gains but pairs this with an acute awareness of possible consumer harms. The Advisory pinpoints several risks, including consumers’ exposure to malfunctioning AI systems, intentional marketing of substandard AI by developers, and the deployment of AI in misleading or deceptive manners.

With AI now permeating everyday applications—from the latest ai news & ai tools to AI video generators—the Advisory establishes a clear stance on various misuses. For instance, falsely advertising the functionality or value of AI systems, misrepresenting their safety or conditions, and employing deepfakes or chatbots to deceive, are examples explicitly cited as contravening Massachusetts consumer protection laws.

The Advisory further equates violations of state laws designed to protect public health, safety, or welfare as infractions of consumer protection laws and points out that breaches of federal consumer protection regulations may similarly infringe upon state statutes. This ties into the Federal Trade Commission’s statements regarding unlawful deceptive use of AI, including cases where AI is used to impersonate entities or officials.

With regards to data security laws, the Advisory highlights AI systems’ duty to protect personal information and adhere to stipulated breach notification requirements. This aligns with broader industry concerns over the safeguarding of data within artificial intelligence generated images and AI text generator platforms, emphasizing privacy in an increasingly data-centric world.

In the realm of antidiscrimination, the Attorney General’s guidance is unequivocal: AI systems that input discriminatory data or yield biased results are engaging in unlawful activity. This is crucial in a range of applications, from credit evaluations to employment screening, where equality of opportunity must be preserved. The Advisory sheds light on the necessity for creditors, for an instance, to provide clear reasons for loan application rejections, even when such decisions are derived from algorithmic tools.

The Massachusetts Attorney General’s statement makes it clear that there is no need for new legislation to bridge the gap where AI regulation is concerned—existing laws already suffice. Nevertheless, the directive also signals the Attorney General’s intent to keep a watchful eye on AI-related consumer impacts, from the creative outputs of an AI images generator to critical algorithmic decision-making tools.

This initiative raises particular concern about the potential for generative AI to produce outputs that could deceive consumers, including but not limited to, sophisticated deepfakes or the less-discussed phenomenon of ‘chatbot hallucinations’—instances where conversational AI delivers factually incorrect or nonsensical responses.

Businesses using or vending generative AI or algorithmic decision mechanisms are thus reminded to operate in compliance with state mandates. An investigation by the Attorney General’s office could be trigged by a mere reasonable suspicion of unfair or deceptive practices—highlighting the crucial need for regulatory adherence.

In a dynamic landscape where AI continues to evolve rapidly, this Advisory from Massachusetts could serve as a template for other states in holding AI applications to high standards, ensuring both innovation and consumer protections advance hand in hand. It’s a significant step in the direction of comprehensive AI legislation, proving government entities are poised to address the novel challenges posed by this revolutionary technology. Massachusett’s businesses would do well to heed this Advisory, aligning their AI practices with the rigor of long-established legal expectations.