The Federal Communications Commission (“FCC”) is actively assessing the impact of artificial intelligence (“AI”) on the telemarketing industry. In a significant move, the FCC issued a Declaratory Ruling last February clarifying that AI-driven telemarketing calls fall under the jurisdiction of the Telephone Consumer Protection Act (“TCPA”) and its regulations.

Subsequently, the Commission adopted a Notice of Proposed Rulemaking (“NPRM”), introducing measures aimed at prohibiting generative AI technology in telemarketing without securing prior consent from consumers. An additional Notice of Inquiry (“NOI”) was issued in November, indicating a formal investigation into both the positive and negative effects of AI calling on consumers.

Understanding the Purpose of the FCC’s AI Call NOI

The primary aim of the FCC’s NOI is not merely to implement stricter regulations but to comprehend how AI-generated calls may pose risks to consumers. As stated by FCC Chairwoman Jessica Rosenworcel, “We know the risks that this technology involves, but we also want to harness the benefits.” The inquiry focuses on several key areas:

• How AI can protect consumers from unwanted telecommunications.
• The current state of AI applications in calling and texting consumers.
• The impact of emerging AI technologies on consumer privacy under the TCPA.
• Potential steps the Commission might take to address these concerns.

Key Takeaways from FCC’s AI Regulatory Efforts

The FCC is soliciting commentary on how to define AI technologies. It acknowledges that AI encompasses a spectrum of technologies and recognizes that AI technologies emulating human voice are regarded as artificial voices for TCPA regulatory purposes. Accordingly, the TCPA prohibits initiating calls to residential or mobile lines using artificial or prerecorded voices without prior consent from the recipient.

The FCC’s NPRM proposed a new rule stipulating that consumers must clearly consent to the use of AI-generated communications before being contacted. Furthermore, it suggested that any entities making AI-generated calls or sending messages must disclose this fact at the beginning of their communications.

Relevance of FCC’s AI Efforts to Businesses

The FCC is currently evaluating a multitude of perspectives as part of its AI call rulemaking process. As the use of AI for consumer communications becomes increasingly prevalent, the FCC is gathering extensive feedback from both the public and the telemarketing industry. Businesses utilizing generative AI for their marketing strategies are advised to consult legal experts to ensure compliance with the FCC’s recent guidelines.