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FTC warns tech: ‘Keep your AI claims in check’

The FTC, fresh off announcing a whole new division taking on “snake oil” in tech, has sent another shot across the bows of the over-eager industry with a sassy warning to “keep your AI claims in check.”

I wrote a little while ago (okay, five years) that “AI Powered” is the meaningless tech equivalent of “all natural,” but it has progressed beyond cheeky. It seems like just about every product out there claims to implement AI in some way or another, yet few go into detail — and fewer still can tell you exactly how it works and why.

The FTC doesn’t like it. Whatever someone means when they say “powered by artificial intelligence” or some version thereof, “One thing is for sure: it’s a marketing term,” the agency writes. “And at the FTC, one thing we know about hot marketing terms is that some advertisers won’t be able to stop themselves from overusing and abusing them.”

Everyone is saying AI is reinventing everything, but it’s one thing to do that at a TED talk; it’s quite another to claim it as an official part of your product. And the FTC wants marketers to know that these claims may count as “false or unsubstantiated,” something the agency is very experienced with regulating.

So if your product uses AI or your marketing team claims it does, the FTC asks you to consider:

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  • Are you exaggerating what your AI product can do? If you’re making science fiction claims that the product can’t back up — like reading emotions, enhancing productivity or predicting behavior — you may want to tone those down.
  • Are you promising that your AI product does something better than a non-AI product? Sure, you can make those weird claims like “4 out of 5 dentists prefer” your AI-powered toothbrush, but you’d better have all 4 of them on the record. Claiming superiority because of your AI needs proof, “and if such proof is impossible to get, then don’t make the claim.”
  • Are you aware of the risks? “Reasonably foreseeable risks and impact” sounds a bit hazy, but your lawyers can help you understand why you shouldn’t push the envelope here. If your product doesn’t work if certain people use it because you didn’t even try, or its results are biased because your dataset was poorly constructed… you’re gonna have a bad time. “And you can’t say you’re not responsible because that technology is a ‘black box’ you can’t understand or didn’t know how to test,” the FTC adds. If you don’t understand it and can’t test it, why are you offering it, let alone advertising it?
  • Does the product actually use AI at all? As I pointed out long ago, claims that something is “AI-powered” because one engineer used an ML-based tool to optimize a curve or something doesn’t mean your product uses AI, yet plenty seem to think that a drop of AI means the whole bucket is full of it. The FTC thinks otherwise.

“You don’t need a machine to predict what the FTC might do when those claims are unsupported,” it concludes, ominously.

Since the agency already put out some common-sense guidelines for AI claims back in 2021 (there were a lot of “detect and predict COVID” ones then), it directs questions to that document, which includes citations and precedents.

 

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Who still loves fintech?

Hello and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is Alex and I am back! Yep, after taking some time to learn how to care for tiny humans, I’ve returned and am more than fired up to get back to podcasting. That means early mornings to get the Monday show off the page, and into your ears, made worth it thanks to the startup economy proving incredibly interesting thus far in 2023.

Now, what did we get into? The following:

  • Stocks are largely up today, but only after a terrible week last week. So, a little plus/minus there. Cryptos are not too changed in the last day, but NFT trading results are rising again which is good news for folks into the tokens.
  • News broke recently that the United States is also taking a hard look at the Adobe-Figma deal, more evidence that the mega-transaction could fail to consummate. This is notable as we have some historical notes regarding what happens when a huge deal falls apart before it can get done. Hello, Plaid.
  • In more business-friendly news, the fintech market is not dead and two venture firms are taking pole position.
  • Moving along to startup rounds, we took a look at ProsperOps and Flock.
  • And to close, more layoffs at Twitter.

More soon, as we are back Wednesday and Friday!

For episode transcripts and more, head to Equity’s Simplecast website. 

Equity drops at 7 a.m. PT every Monday and Wednesday, and at 6 a.m. PT on Fridays, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together, and more!

For episode transcripts and more, head to Equity’s Simplecast website. 

Equity drops at 7 a.m. PT every Monday and Wednesday, and at 6 a.m. PT on Fridays, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together, and more!

For episode transcripts and more, head to Equity’s Simplecast website. 

Equity drops at 7 a.m. PT every Monday and Wednesday, and at 6 a.m. PT on Fridays, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together, and more!

For episode transcripts and more, head to Equity’s Simplecast website. 

Equity drops at 7 a.m. PT every Monday and Wednesday, and at 6 a.m. PT on Fridays, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together, and more!

For episode transcripts and more, head to Equity’s Simplecast website. 

Equity drops at 7 a.m. PT every Monday and Wednesday, and at 6 a.m. PT on Fridays, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. TechCrunch also has a great show on crypto, a show that interviews founders, one that details how our stories come together, and more!

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Oppo, Vivo, and Xiaomi are bringing satellite communication to their devices through Qualcomm

Qualcomm announced at the Mobile World Congress (MWC) that multiple phone makers including Xiaomi, Oppo, Vivo, Motorola, Nothing and Honor are bringing satellite communication capabilities to their phones. However, manufacturers didn’t provide details about what devices will first have these features and when the companies would launch them.

Qualcomm unveiled its Snapdragon Satellite tech in partnership with satellite service provider Iridium at the Consumer Electronics Show (CES) last month. Using this solution, smartphones can have capabilities of two-way texting and other messaging applications using satellites in emergency situations.

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The chipmaker said that Snapdragon Satellite will be available across upcoming RF modems and multiple models of 8 and 4 series processors for smartphones.

“By incorporating Snapdragon Satellite into next–generation devices, our partners will be able to offer satellite messaging capabilities thanks to a mature and commercially available global LEO constellation, which can allow subscribers around the world to communicate outdoors with emergency service providers, as well as family and friends,” Qualcomm vice president for product management, Francesco Grilli said in a statement.

Last year, Apple introduced satellite-based emergency communication features with the iPhone 14 series — first in the US and Canada, and later in France, Germany, Ireland, and the UK through Globestar’s satellite network. Last week, Samsung announced its own satellite tech as well with a promise to embed it in a future smartphone.

What’s more, British smartphone maker Bullitt — which also announced its own satellite tech at CES — announced a rugged smartphone with satellite connectivity a few days ahead of MWC. Taiwanese chipmaker MediaTek is also set to showcase its satellite connectivity solution for smartphones at the event. This sets the groundwor6 for upcoming smartphones to have emergency satellite communication features for remote areas where network connectivity is not reliable.

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