In this week's edition, we dive into the fast-evolving world of Artificial Intelligence (AI), where regulators and lawmakers are racing to keep up with technology's rapid advancements. From the European Union assembling a team of AI experts to shape upcoming regulations, to U.S. lawmakers positioning themselves for AI battles in 2025, the race to control and regulate AI is heating up on both sides of the Atlantic. Plus, the FTC cracks down on companies using AI for deceptive practices, and California's AI safety bill faces a major setback. Stay informed as we unpack the critical developments shaping the future of AI and tech policy.

In this week’s Nimitz Tech:

• AI Scams: The FTC cracks down on AI scams, sending a clear message: AI-driven deception won't escape the law.

• AI regulation: Congress lays the groundwork for major AI regulation in 2025, with lawmakers eager to shape the future of tech policy.

• Social Media: Meta is testing AI-generated posts that cater to your interests, but will users embrace or reject this shift?

WHO’S HAVING EVENTS THIS WEEK?

TECH NEWS DRIVING THE WEEK

In Washington

• The Federal Trade Commission (FTC) has launched Operation AI Comply, targeting companies using AI for deceptive practices that harm consumers. The FTC is pursuing cases against firms that promote fake AI-generated reviews, falsely advertise AI lawyer services, and offer AI-powered schemes promising quick profits from online storefronts. DoNotPay, a company that claimed to offer "robot lawyer" services, has settled for $193,000 after its AI tools failed to deliver on its legal promises. Other companies, like Ascend Ecom and E-commerce Empire Builders, have been accused of scamming consumers with false claims about AI-powered business opportunities. The FTC’s actions underscore that AI technology is not exempt from laws against fraud and deception.

• Lawmakers are positioning themselves for a larger role in shaping AI policy in 2025 by introducing a variety of AI-related bills, even though most are unlikely to advance before the year ends. Senator Ted Cruz has prioritized his bipartisan Take It Down Act, which would criminalize the non-consensual publication of sexual deepfake images, though it was recently blocked. Senate Commerce Committee Chair Maria Cantwell is pushing to formalize the AI Safety Institute within the Commerce Department, while Senator Ed Markey has introduced the AI Civil Rights Act, which seeks to regulate AI’s impact on civil rights. Meanwhile, lawmakers like Senator Mike Rounds and Representative Ted Lieu are also laying groundwork for future AI legislation, signaling a growing focus on AI regulation in the coming years.

• Senators Katie Britt and John Fetterman have introduced the Stop the Scroll Act, which would require social media platforms to display mental health warning labels. These pop-up warnings, developed by the Surgeon General and Federal Trade Commission, would alert users to potential mental health risks associated with social media use and provide access to mental health resources. The legislation comes in response to rising concerns about social media’s impact on youth mental health, with research showing increased anxiety and depression among teens who spend excessive time online. Support for the bill has grown, with attorneys general from 42 states urging Congress to take swift action.

National

• Meta's recent announcement that it will begin generating synthetic content tailored to individual users marks a new development in the AI landscape, further extending the role of AI in social media. At its annual developers conference, Meta revealed it is testing AI-generated posts and images that will appear on Facebook and Instagram feeds based on users' interests, with options for users to customize or opt out of the content. While this move is a logical progression for the company, which already prioritizes algorithmically curated content, it raises questions about how users will react to the shift. The public's mixed reception to AI-generated media in other fields suggests Meta may face both excitement and skepticism as it pushes bot-generated content.

• California Governor Gavin Newsom vetoed SB 1047, a bill aimed at enhancing AI safety protocols for developers of advanced AI models. The bill, introduced by Senator Scott Wiener, would have required developers to submit safety plans and maintain the ability to shut down AI systems in case of emergencies. Newsom explained that the bill’s focus on large AI models might provide a false sense of security while ignoring smaller, specialized systems that also pose risks. While the bill had support from AI researchers and public figures, it faced opposition from major tech companies like Meta and OpenAI. Despite the veto, Newsom pledged to continue working on AI regulation with industry experts.

International

• The European Union has convened a group of AI experts to draft the "code of practice" for the AI Act, a set of regulations that will govern how businesses comply with the upcoming laws. The working groups, composed of notable figures such as AI pioneer Yoshua Bengio and former UK policy advisor Nitarshan Rajkumar, will focus on issues like copyright and risk mitigation. Big tech companies, including Google and Microsoft, will participate alongside nonprofit organizations and academics. While the code of practice will not be legally binding when introduced in 2024, it will serve as a compliance checklist for companies. The discussions are expected to clarify transparency requirements, particularly regarding the data used to train AI models, a contentious issue in the industry.

QUOTE OF THE WEEK

FOR FUN

• 🐕️ Wiener 500 Dachshund Dash, Saturday October 5th, 2 - 5 p.m. The Wharf.

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