AI Technology-a source of empowerment in consumer protection | IGF 2023 Open Forum #82

Knowledge Graph of Debate

Session report

Kevin Luca Zandermann

Artificial Intelligence (AI) has the potential to revolutionize public services, particularly in personalized healthcare and education. Examples from Finland and the UK demonstrate how AI has successfully integrated into law enforcement practices, highlighting its transformative impact on public service delivery.

Regulatory bodies should seriously consider incorporating AI tools into their processes. Finland’s use of AI in cartel screening and the UK Competition and Markets Authority’s development of an AI tool for automatic merger tracking serve as successful examples, streamlining operations and enhancing efficiency.

However, it is crucial to strike the right balance between automated AI-powered steps and human oversight. Effective regulation requires the integration of both elements. The Finnish Authority, for instance, allows a stage of human oversight even after AI detection, ensuring decisions rely on well-informed processes. Similarly, Article 14 of the European Union’s AI Act emphasizes the importance of human oversight in regulating AI.

While there are potential benefits, the use of AI in regulation, particularly with Large Language Models (LLMs), also carries risks. A Stanford survey reveals that only one out of twenty-six competition authorities mentions using an LLM-powered tool, highlighting the need for cautious implementation and consideration of potential implications.

Kevin Luca Zandermann suggests regulators engage in retrospective exercises with AI, reviewing well-known cases to identify previously unnoticed patterns and enhance regulatory processes. Clear and comprehensive AI legislation, particularly regarding human oversight, is crucial. The lack of clarity in the EU’s current AI legislation raises concerns and emphasizes the need for further development.

Despite limited resources, conducting retrospective exercises and developing Ex-officio tools remain crucial, especially given the impending AI legislation. These exercises help regulators adapt to the evolving technological landscape and effectively integrate AI into their practices.

In conclusion, AI has the potential to transform public services, but its implementation requires careful consideration of human oversight. Successful integration in law enforcement and regulation in Finland and the UK serves as evidence of AI’s capabilities. However, risks associated with technologies like LLMs cannot be underestimated. Regulators should engage in retrospective exercises, work towards comprehensive AI legislation, and address potential concerns to ensure responsible and effective AI implementation.

Sally Foskett

The Australian Competition and Consumer Commission (ACCC) is taking proactive measures to address consumer protection issues. They receive hundreds of thousands of complaints annually and are attempting to automate the process of complaint analysis using artificial intelligence (AI). This move aims to improve their efficiency in handling consumer issues and ensure fair treatment for consumers. Additionally, the ACCC is exploring the collection of new information such as deceptive design practices, which will enhance their understanding of consumer concerns and enable them to better protect consumers’ rights.

Understanding algorithms used in consumer interactions is another key area of focus for the ACCC. Regulators must be able to explain how these algorithms operate to ensure transparency and fairness in the marketplace. To achieve this, the ACCC gathers information such as source code, input/output data, and business documentation. By comprehending and being able to scrutinize these algorithms, they can better identify potential issues related to consumer protection and take the necessary enforcement actions.

The ACCC is also supportive of developing consumer-centric AI. They recognize the potential of AI in helping consumers navigate the market and make informed decisions. This aligns with the Sustainable Development Goal 9: Industry, Innovation and Infrastructure, which encourages the use of innovative technology to drive economic growth and promote industry development. The ACCC believes that by leveraging AI technology, consumers can benefit from more personalized and accurate information, leading to better economic outcomes and increased satisfaction.

In terms of data gathering, the ACCC acknowledges the importance of considering various sources. They emphasize going back to the basics and critically assessing the sources of data. By ensuring that the data used for analysis is accurate, reliable, and representative of the market, the ACCC can make more informed decisions and take appropriate actions to safeguard consumer interests. The ACCC is exploring the possibility of obtaining data from data brokers, hospitals, and other government departments. Additionally, they plan to make better use of social media platforms to detect and address consumer issues promptly.

It is evident that the ACCC advocates for utilizing data from different sources in their decision-making and enforcement activities. They suggest using data from other government departments, data brokers, hospitals, and social media to gain a comprehensive understanding of consumer trends, behaviours, and concerns. This multi-source data approach allows the ACCC to identify emerging issues, better protect consumers, and ensure fair competition in the marketplace.

In conclusion, the ACCC is actively pursuing proactive methods of detecting and addressing consumer protection issues. They are leveraging AI to automate complaint analysis, enhancing their understanding of algorithms used in consumer interactions, and supporting the development of consumer-centric AI. The ACCC recognizes the importance of considering various sources of data and is exploring partnerships and collaborations to access relevant data. By adopting these strategies, the ACCC aims to enhance consumer protection, promote fair business practices, and contribute to sustainable economic growth.

Christine Riefa

The use of artificial intelligence (AI) in consumer protection is seen as a potential tool, but experts caution that it is not a panacea for all the problems faced in this field. While 40 to 45% of consumer authorities surveyed are currently using AI tools, it is important to note that there are other technical tools being employed for consumer enforcement that are not AI-related.

One of the main concerns raised is the potential legal challenges that consumer protection agencies may face when using AI for enforcement. Companies being investigated may challenge the use of AI, and this issue has not been extensively studied yet. However, it has been observed that agencies with a dual remit, not solely dedicated to consumer protection, tend to have better success in implementing AI solutions.

Consumer law enforcement is considered to be lagging behind other disciplines, but efforts are being made to catch up. It is acknowledged that there is still work to be done in terms of classification and normative work in AI to ensure that all stakeholders are on the same page regarding what AI is and what it entails.

Collaboration among different stakeholders is deemed crucial for achieving usable results in consumer protection. It is emphasized that consumer agencies need to work together in unison to effectively address the challenges faced in this field.

Furthermore, it is argued that AI should not only be used for detecting harmful actions but also for preventing them. Consumer law enforcement needs to undergo a transformative shift in its approach. AI can be leveraged more effectively by adopting a prescriptive method that focuses on preventing harm to consumers rather than solely relying on detection.

In conclusion, while AI shows promise in consumer protection, it is not a solution that can address all challenges on its own. Consumer protection agencies need to consider potential legal challenges, collaborate with other stakeholders, and focus on leveraging AI in a transformative way to ensure effective consumer protection.

Martyna Derszniak-Noirjean

Artificial intelligence (AI) is reshaping the consumer protection landscape, presenting both benefits and challenges. It is vital to examine the implications of AI in consumer protection and determine the necessary regulations to ensure a fair and balanced environment.

AI provides an economic technological advantage over consumers, giving firms and entrepreneurs the potential to exploit the system and engage in unfair practices. This raises concerns about the need for effective protections to safeguard consumer rights. Therefore, there is a critical need to discuss the use of AI in consumer protection. The sentiment surrounding this argument is neutral, reflecting the requirement for comprehensive examination and evaluation.

Understanding the extent of regulation required for AI is a complex task. AI has the potential to both disadvantage and assist consumers. Striking the right balance between regulating AI, innovation, and economic growth is challenging. This argument underscores the importance of carefully considering the implications of excessive or inadequate regulation to ensure a fair marketplace. The sentiment remains neutral, highlighting the ongoing debate regarding this issue.

However, AI also offers opportunities to enhance the efficiency and effectiveness of consumer protection agencies. Consumer protection agencies are exploring the use of AI in investigating unfair practices, and they are developing AI tools to support their efforts. This signifies a positive sentiment towards leveraging AI for consumer protection. It emphasizes the potential of AI to augment the capabilities of consumer protection agencies, enabling them to better safeguard consumers’ rights.

Based on the analysis provided, AI is significantly transforming consumer protection. It is crucial to strike the right balance between regulation and innovation to ensure fairness and responsible consumption. While concerns regarding potential unfair practices exist, AI also presents an opportunity to enhance the effectiveness of consumer protection agencies. Overall, a neutral sentiment prevails, emphasizing the need for ongoing discussions and evaluations to successfully navigate the complexities of AI in consumer protection.

Piotr Adamczewski

The use of artificial intelligence (AI) in consumer protection agencies was a key topic of discussion at the ICEPAN conference. It was highlighted that AI is already being utilized by many agencies, and its development is set to continue. The main argument put forward is that AI is essential for detecting both traditional violations and new infringements that are connected to digital services.

To further explore the advancement of AI tools in consumer protection, a panel of experts was invited to contribute their perspectives. These experts included professors, representatives of international organizations, and enforcement authorities. Professor Christine Rifa conducted a survey that shed light on the current usage of AI by consumer protection agencies. This survey likely provided valuable insights into the challenges, benefits, and potential for improvement in AI implementation.

The UOKiK (Poland’s Office of Competition and Consumer Protection) recognized the potential of AI for enforcement actions and initiated a project specifically focused on unfair clauses. The project was born out of a need for efficiency and was supported by an existing database of 10,000 established unfair clauses. Training AI to detect such clauses in standard contract terms proved to be particularly useful, as the process is time-consuming and labor-intensive for human agents.

The UOKiK is also actively working on a dark patterns detection tool. Dark patterns refer to deceptive elements and tactics used in e-commerce user interfaces. The goal is to proactively identify and address violations rather than relying solely on consumer reports. Creating a detection tool specifically targeted at dark patterns aligns with the objective of ensuring responsible consumption and production.

In addition, the UOKiK is preparing a white paper that will document its experiences and insights regarding the safe deployment of AI software for law enforcement. The white paper aims to share knowledge and address potential problems that the UOKiK has encountered. This document is a valuable resource for other agencies and stakeholders interested in implementing AI technology for law enforcement purposes. The expected release of the white paper next year indicates a commitment towards transparency and information sharing within the field.

Overall, the expanded summary highlights the increasing importance of AI in consumer protection agencies. The discussions and initiatives at the ICEPAN conference, the survey conducted by Professor Christine Rifa, the projects carried out by the UOKiK, and the upcoming white paper all emphasize the potential benefits and challenges associated with deploying AI in the realm of consumer protection. The insights gained from these endeavors contribute to ongoing efforts towards more effective and efficient law enforcement in the digital age.

Melanie MacNeil

AI has the potential to empower consumers and assist consumer law regulators in addressing breaches of consumer law. Consumer law regulators have started using AI tools to increase efficiency in finding and addressing potential breaches of consumer law. These tools can support preliminary assessments of investigations and highlight conduct that might be a breach of consumer law. For example, the Office of the Competition and Consumer Protection in Poland uses web crawling technology with AI to analyze consumer contracts and identify unfair contract terms.

Similarly, regulators are utilizing AI to detect and address product safety issues. The Careers Consumer Injury Surveillance System searches for products online that have been the subject of a product safety recall using AI. Additionally, AI technology and software enable early diagnosis of product safety issues in smart devices. These advancements contribute to safer consumer products and protect consumers from potential harm.

AI not only helps with consumer law and product safety but also provides opportunities to nudge consumers towards greener choices. The German government has funded a digital tool that uses AI to provide consumers with a series of facts about how to reduce their energy consumption. This empowers consumers to make more environmentally conscious decisions. Additionally, AI can assist consumers in making green choices by breaking through the information overload on green labels, helping them better understand the environmental impact of their choices.

However, there are concerns about new and emerging risks associated with AI and new technology in relation to consumer health and safety. The OECD is currently undertaking a project to assess the impact of digital technologies in consumer products on consumer health and safety. The focus is on understanding and addressing product safety risks through safety design. It is important to address and mitigate these risks to ensure the well-being and safety of consumers.

Regulators are often criticized for being slow to address problems compared to businesses, which are not as restricted. There is a need for regulators to adapt and keep pace with technological advancements to effectively address consumer issues. Collaboration and sharing of learnings are crucial in moving quickly to address issues. By working together and sharing knowledge, stakeholders can collectively address the challenges posed by AI and emerging technologies.

In conclusion, AI has the potential to transform the consumer landscape by empowering consumers and assisting regulators in addressing breaches of consumer law and product safety. However, there is a need to carefully navigate the risks associated with AI and ensure consumer health and safety. Collaboration and knowledge-sharing are crucial in effectively addressing the challenges posed by emerging technologies. By embracing AI’s potential and working together, stakeholders can create a consumer environment that is fair, safe, and sustainable.

Angelo Grieco

The European Commission has prioritised the development and use of AI-powered tools for investigating consumer legislation breaches. To assist EU national authorities, they have established the Internet Investigation Laboratory (eLab), which utilises artificial intelligence to conduct extensive evaluations of companies and their practices. eLab employs web crawlers, AI-powered tools, algorithms, and analytics to aid in large-scale reviews. This demonstrates the European Commission’s commitment to consumer protection and leveraging AI technology.

Behavioural experiments are used to assess the impact of commercial practices, specifically targeted advertising cookies, on consumers. These experiments play a crucial role in enforcing actions against major businesses and ensuring consumer protection. They allow regulatory authorities to thoroughly examine the effects of various practices and address any potential harm.

In order to investigate and mitigate risks associated with AI-based services, a proactive approach is necessary. Investigations are currently underway to assess the hazards posed by AI-powered language models that generate human-like text responses. These models have the potential to manipulate information, spread misleading content, perpetuate biases, and contain errors. Identifying and addressing these risks is crucial for responsible and ethical use of AI.

Angelo Grieco is leading efforts to enhance the use of AI in investigations, with a focus on compliance monitoring for scams, counterfeiting, and misleading advertising. Grieco aims to improve the efficiency and effectiveness of investigations through the use of advanced technology. Additionally, there is a recognition of the importance of improving case handling processes and making evidence gathering more streamlined. Grieco aims to develop tools that can accommodate jurisdiction-specific rules and ensure adherence to legal procedures.

In summary, the European Commission is committed to developing and utilising AI-powered tools for investigating consumer legislation breaches. The Internet Investigation Laboratory (eLab) demonstrates this dedication by employing AI technology to aid in comprehensive evaluations of companies and practices. Behavioural experiments are used to assess the impact of commercial practices on consumers. Proactive measures are being taken to investigate and mitigate risks associated with AI-based services. Angelo Grieco is actively working to enhance the use of AI in investigations, with a focus on compliance monitoring and efficient case handling. These initiatives reflect a commitment to protecting consumer rights and ensuring effective and ethical investigations.

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