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July 29, 2024

FCC Proposes New Rules Regarding AI-Generated Robocalls and Robotexts

In response to the rise of the use of artificial intelligence (AI) technologies in telecommunications, on July 17, 2024, the Federal Communications Commission (FCC) issued a Notice of Proposed Rulemaking (Notice), CG Docket No. 23-362, outlining certain proposed restrictions on AI-generated calls and text messages.

The Telephone Consumer Protection Act (TCPA) sets restrictions on certain calls or texts made without the prior express consent of the recipient.  With the increasing prevalence of AI technologies that can generate content for calls and texts, the FCC now proposes to update the existing TCPA rules to cover certain AI generated telecommunications.

Toward that end, the Notice first defines an “AI generated call” as “a call that uses any technology or tool to artificially generate a voice or text using computational technology or other machine learning, including predictive algorithms, and large language models, to process natural language and produce voice or text content to communicate with a called party over an outbound telephone call.”  And with respect such AI generated calls, the Notice purports to impose additional requirements on callers and texters making such call calls, including the following

  • A requirement to secure consumer consent to receive artificial and prerecorded calls that may include AI-generated calls through a clear and conspicuous disclosure.
  • A requirement to secure consumer consent to receive text messages containing AI-generated content through a clear and conspicuous disclosure.
  • If a call contains an AI-generated voice, a requirement that the caller must clearly disclose, at the beginning of each call, that the call is using AI-generated technology.

In addition, the Notice exempts from these requirements calls or texts made by individuals with speech or hearing disabilities using AI technologies designed to facilitate communication.

The Notice also seeks comments on technologies that can detect potentially fraudulent or AI-generated calls in real-time, alert consumers, and block similar future calls.  Additionally, it asks for input on the privacy implications of such technologies and potential rules to protect the privacy of all parties involved.

While the proposals aim to empower consumers by giving them the ability to identify and avoid AI-generated calls, thereby reducing the risk of fraud, they also seek to ensure that the beneficial uses of AI, particularly for individuals with disabilities, are not impeded.  For callers, especially smaller entities, the proposed regulations may introduce new compliance costs associated with disclosure requirements and consent management.  The Notice seeks feedback on these potential costs and benefits to strike a balance between consumer protection and the practicalities of implementing these measures.

By staying informed and participating in the regulatory process, consumers and industry stakeholders can help shape the future of telecommunications and ensure that AI technologies are used responsibly and beneficially.  As AI technologies continue to evolve, it is crucial that regulators remain mindful of the impact on the consumer financial industry.  Regulations must be clear and compliance measures must be cost effective to foster the many positive applications of AI.

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