On August 7, 2024, the Federal Communications Commission (FCC) took a significant step with a Notice of Proposed Rulemaking and Notice of Inquiry concerning the use of artificial intelligence (AI) in outbound calls and texts. This move aligns with the FCC’s ongoing efforts to address the leading category of consumer complaints under the Telephone Consumer Protection Act (TCPA).
The FCC’s proposed rules would introduce several new requirements and definitions for businesses employing AI technologies for communication:
- Definition of “AI-generated call”: This clarifies which types of calls fall under the new regulations.
- Disclosure requirements: Businesses must inform recipients that they are receiving an AI-generated call or text.
These proposed changes aim to enhance transparency and consumer protection in the increasingly digital communication landscape.
What does this mean for businesses using AI for calls and texts?
The introduction of these rules could have several implications for how businesses operate, potentially including:
- Increased compliance costs: Adapting to new disclosure requirements and possibly altering AI communication strategies might lead to higher operational costs.
- Need for technology updates: Businesses may need to update their AI systems to incorporate the required disclosures automatically.
Businesses must understand these potential impacts to prepare adequately and avoid violations of the TCPA. A failure to comply with the new rules could lead to legal challenges, including class-action lawsuits.
The FCC’s recent action reflects an attempt to adapt regulatory frameworks to keep pace with technological advancements in communication. Businesses that rely on AI-generated calls and texts should closely monitor these developments to help better ensure compliance and protect themselves from potential legal issues. By staying informed and proactive, businesses can continue to leverage AI technologies while respecting consumer rights and regulatory demands.