On March 13, 2024, the Carnegie Endowment for Peace hosted Federal Trade Commission (FTC or Commission) Chair Lina Khan for a panel discussion on The Future of American Innovation. During the panel, Chair Khan emphasized the importance of understanding the AI stack and its implications for the marketplace. She highlighted the need to evaluate potential updates to the FTC’s regulatory toolkit to address emerging AI tactics effectively.
Chair Khan challenged the notion of protecting national champions in the innovation landscape, arguing that monopolies pose a threat to national interests and global leadership. She emphasized the importance of fostering competition over shielding dominant players in strategic industries. Drawing from historical examples, Khan underscored the role of antitrust enforcement in fostering innovation and preventing market concentration.
Regarding AI, Chair Khan outlined the FTC’s current efforts in studying the AI economy from various layers such as chips, cloud services, models, and applications. The Commission aims to assess market structures and determine whether existing enforcement tools are sufficient or if additional policy measures are necessary to regulate new AI practices.
Chair Khan reiterated the FTC’s position on addressing AI violations, emphasizing that AI does not exempt businesses from adhering to existing laws against practices like price-fixing and fraud. She underscored the Commission’s commitment to maintaining regulatory standards in the AI era without leniency for violations committed using artificial intelligence.
Looking ahead, the FTC, under Chair Khan’s leadership, is poised to leverage its authority in competition and consumer protection to address AI-related challenges. The Commission’s approach aligns with President Biden’s AI Executive Order, signaling a continued emphasis on enforcing regulatory frameworks in the evolving technology landscape. As the FTC navigates the complexities of AI regulation, the focus remains on upholding fair competition and safeguarding consumer interests in an increasingly digital economy.
