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America’s AI watchdog is losing its bite

MIT Technology Review - AI
Jul 24, 2025 18:59
James O'Donnell
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airesearchtechnology

Summary

The Federal Trade Commission (FTC) has been actively regulating AI companies under the Biden administration, targeting deceptive practices and harmful technologies. However, with the announcement of President Trump’s AI Action Plan, the FTC’s oversight and enforcement powers over AI may be significantly reduced. This shift could lead to less stringent regulation of AI companies and increased risks for consumers.

Most Americans encounter the Federal Trade Commission only if they’ve been scammed: It handles identity theft, fraud, and stolen data. During the Biden administration, the agency went after AI companies for scamming customers with deceptive advertising or harming people by selling irresponsible technologies. With yesterday’s announcement of President Trump’s AI Action Plan, that era may…
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