company DoNotPay which claimed to offer “the world’s first artificial intelligence robot lawyer” has agreed to pay $193,000 to settle a Federal Trade Commission (FTC) lawsuit. As part of Operation AI Comply, the FTC is cracking down on companies that use artificial intelligence for deception or Fraud They use customers.
In its complaint, the FTC points to DoNotPay’s promises, saying the company said it would “replace artificial intelligence in the $200 billion legal industry.” In fact, this company has claimed that its “robotic lawyer” can replace humans in the production of legal documents.
Accusations and fines made by the world’s first artificial intelligence lawyer
However, the FTC says the company made its claim without any testing. The text of the complaint states:
“None of the Service’s technologies are trained with a comprehensive set of federal and state laws, regulations, and judicial decisions, or with data about users of those laws in real-world patterns. DoNotPay employees have not tested the quality and accuracy of the legal documents and recommendations generated by the legal features of their Service. “Also, DoNotPay has not hired a lawyer to test its service.”
DoNotPay claims its technology has saved businesses $125,000 in legal fees, but the FTC believes its AI robolawyer service was ineffective.
DoNotPay has now agreed to pay $193,000 to settle the allegations and notify its consumers.
The Federal Trade Commission has also announced that it will take action against other companies that have used AI services to mislead customers. For example, the artificial intelligence “writing assistant” service made by Rytr provides its subscribers with tools to create fake reviews, the FTC said. The FTC recently passed legislation aimed at preventing the creation and publication of fake and AI-generated product reviews.
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