FTC’s Authority Over AI Models Discussed in CNBC Interview

During a recent episode of CNBC’s “Squawk Box,” Jay Clayton, the White House AI Czar and Director of National Intelligence, stated that the Federal Trade Commission (FTC) has the power to stop the launch of new AI and similar models if harmful practices are identified. He also mentioned that there have been instances where some agents have violated the principle of not causing harm to humans.

Becky Quick, one of the co-hosts, brought up a report from Axios claiming that the FTC has issued subpoenas to OpenAI and Anthropic while investigating possible violations related to consumer protection. She asked Clayton if the FTC would actively prosecute any wrongdoing discovered and whether such actions could indeed halt the rollout of new AI models if bad practices were confirmed.

In response, Clayton assured her, saying, “The short answer is yes, absolutely. We’ve heard from the American public, and they expect us to utilize our enforcement and regulatory capabilities to keep them safe. If there are unfair practices under FTC jurisdiction, or even violations of criminal law that fall under the DOJ, we will enforce those standards vigorously. There’s a clear expectation from President Trump that we’ll do this, and that aligns with what the public wants. This approach is not inconsistent with responsible leadership; you have to lead with a sense of responsibility.”

Another co-host, Joe Kernen, chimed in, recalling the three fundamental rules set by Isaac Asimov, particularly the one that emphasizes never harming a human. He pondered whether it was possible to embed such ethical guidelines into the very framework of AI through algorithms that could prevent malicious actions from arising.

Before Clayton could elaborate, Quick interjected with a pressing question, “Do you think some agents have already crossed that line by encouraging someone to take their own life?”

Clayton affirmed this concern, stating, “These are critically important issues surrounding control and monitoring. In the U.S., considering the existing laws and regulations, we are dedicated to overseeing these technologies to prevent harm. I should clarify, though, that the U.S. is indeed the most responsible innovator in technology. We need to remain vigilant about potential risks from elsewhere, including the troubling scenarios you mentioned, and that awareness drives our commitment to lead with this technology, ensuring we can mitigate external risks effectively.”