Former FTC Chair Khan: Use Existing Laws to Hold AI CEOs Accountable

Lina Khan urges strong enforcement against AI firms using existing laws, no new rules needed.

Former Federal Trade Commission Chair Lina Khan has made clear that authorities already possess the legal tools to hold AI companies and their executives accountable for releasing harmful, unvetted, or defective technologies. Khan stated, "Law enforcers already have authority to charge companies and their CEOs for creating and releasing dangerous, unvetted, or defective products." She stressed that "There is no AI exemption to the laws on the books," highlighting that current statutes are adequate to address risks posed by AI.

This approach was reinforced in April 2023, when the FTC joined the Department of Justice, Consumer Financial Protection Bureau, and Equal Employment Opportunity Commission in a joint statement confirming that existing legal authorities apply equally to automated systems and innovative new technologies like AI. This collaborative stance sets a firm regulatory foundation without waiting for new legislation.

In a June 2024 interview, Khan signaled the FTC’s strategic enforcement focus on the industry’s most powerful players, referring to them as "mob bosses." She said, "Being able to go after the 'mob boss' is going to be more effective than going after the henchman at the bottom." This indicates a prioritization of accountability at the highest corporate levels within major tech firms, signaling increased scrutiny for AI executives.

Khan’s perspective influences how legal teams and compliance officers within AI and tech firms gauge their regulatory risk. With no need to await new laws or regulations, enforcement actions under existing frameworks—including those dating back to the Securities Exchange Act of 1934 and other statutes—are poised to ramp up against those responsible for problematic AI products.