Trump’s FTC Is Threatening to Punish Big Tech for “Woke AI”

The Federal Trade Commission has signaled a transition toward a new federal framework for AI oversight, coinciding with Colorado’s decision to narrow its own existing AI legislation. This shift involves the application of longstanding consumer protection laws to AI companies, specifically targeting organizations perceived to be engaged in deceptive or biased modeling. Legal and advocacy groups are sharply divided on the initiative.

America First Legal has expressed support for the FTC’s proposal to address model accuracy and potential bias. Conversely, organizations including the Electronic Frontier Foundation and the Open Markets Institute have criticized the proposal, arguing that the policy threatens to shield companies from state oversight or otherwise poses a risk to technological development. The Cato Institute has also formally entered the discourse through the public comment process regarding the FTC's policy statement.

Coverage does not yet specify the precise mechanisms the FTC will use to penalize firms for what has been characterized as “woke AI,” nor does it confirm the timeline for the adoption of these policies. The ultimate scope of the commission's authority in preempting state-level AI regulations remains unclarified by the available documentation.