FCC Proposes New Rules on AI-Powered Robocalls

In a move that could force businesses to overhaul their automated customer outreach, the Federal Communications Commission (FCC) has proposed new rules requiring companies to disclose when they use artificial intelligence (AI) to generate robocalls and texts, potentially reshaping the landscape of customer interactions and brand loyalty.

The FCC’s proposal aims to increase transparency in AI-powered communications. If implemented, these rules would require upfront disclosure of AI use in automated calls and messages, potentially altering how businesses interact with consumers.

“The FCC rules, if adopted, may require businesses that use automated voice and text communications to make adjustments to their processes, as well as investments in technology and training to ensure compliance,” Trevor Francis, CEO at voice connectivity company 46 Labs, told PYMNTS. “They may need to revise scripts, rethink their use of automation, or implement alternative ways of communicating with their customers.”

Compliance Challenges and Opportunities

The proposal, detailed in Notice FCC 24-84, would require callers to inform consumers when AI is employed in communications. This move aims to equip the public with tools to identify and avoid potentially fraudulent or scam-related calls, according to the FCC. The FCC has issued a notice seeking public comments on its proposed rules and ideas for alerting consumers to AI-generated spam calls and texts.

Instructions for commenting on FCC proposals can be found online.

Robocalls have long been a nuisance for consumers and a challenge for regulators. In 2022, Americans received nearly 50 billion robocalls, according to YouMail, a company that tracks and blocks such calls.

These automated communications range from legitimate business reminders to fraudulent scams, costing consumers billions annually. Previous FCC efforts to combat robocalls have included implementing STIR/SHAKEN protocols to authenticate caller IDs and imposing fines on violators. However, as technology advances, so do the tactics of bad actors.

The rise of AI-generated voices has added complexity to the issue, enabling more convincing impersonations and potentially more effective scams, underscoring the need for updated regulations.

The proposal includes mandatory disclosure of AI use at the start of calls, subject to consumer consent, provisions to protect AI applications that assist consumers with disabilities, and improvements to the FCC’s robocall mitigation database. These measures could impact industries relying on automated communication systems, including marketing, customer service and political campaigning.

However, Francis sees potential benefits: “Swift adoption of the proposed FCC rules could favorably impact a business’s reputation and help establish a level of trust with their customers.

“Voice is historically the most trusted and regulated form of communication available, but the abundance of robocalls and scams consumers receive on a daily basis make many reluctant to answer their phones anymore. Consumers appreciate transparency, and businesses that embrace these changes could see a positive gain in customer satisfaction, trust and loyalty.”

Business Opportunities

The new regulations could also reshape the competitive landscape for AI communication services. Francis noted, “These changes create an opportunity for businesses offering AI communication services to differentiate themselves from their competitors by offering more innovative and personalized solutions that prioritize transparency and privacy while facilitating compliance.”

As AI technology evolves, these regulations attempt to balance innovation with consumer protection. Businesses must navigate these new requirements carefully, potentially leading to more transparent and ethical use of AI in customer communications.

The FCC now seeks public comment on the proposed rules, inviting input from businesses, consumers and other stakeholders before finalizing the regulations. While compliance may present challenges, it also offers opportunities for companies to build trust and loyalty in an AI-driven communication landscape.

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