FCC Proposes New Rules for AI-Generated Calls and Texts

On July 17, 2024, the Federal Communications Commission (FCC) unveiled a draft Notice of Proposed Rulemaking (NPRM) aimed at tightening rules around AI-generated calls and texts. The proposed regulation is intended to address growing concerns over unwanted AI-driven robocalls and text messages. The NPRM includes several new disclosure requirements, a definition of "AI-generated call," and invites public comments on the possible development of technologies that detect and mitigate these automated communications. These potential rules, if enacted, would build on the FCC’s previous regulatory steps related to AI and bring more clarity to the use of AI in telecommunications.

Key Provisions of the Draft NPRM

The FCC’s NPRM highlights two significant changes in its proposed Telephone Consumer Protection Act (TCPA) rules:

1. New Consent and Identification Disclosures: Proposed changes would require clear consent and identification disclosures for

AI-generated voice calls and autodialed text messages containing AI-generated content.

2. Definition and Exemption: The proposed rules provide a working definition of an “AI-generated call” and include an exemption for AI technology used by individuals with speech or hearing disabilities to enable more effective phone communication.

If approved at the Open Commission Meeting scheduled for August 7, 2024, this draft NPRM would mark a substantial addition to the FCC's AI-focused regulatory measures. The FCC has previously taken steps to regulate AI in other areas, such as spectrum sharing and political advertising.

An Ongoing Regulatory Focus on AI Technologies

This draft NPRM adds to a growing series of FCC initiatives around AI in response to the 2023 Presidential Executive Order on AI. In

November 2023, the FCC issued a Notice of Inquiry (NOI) seeking insights into how AI technologies impact robocalling and texting. Following this, a Declaratory Ruling in early 2024 clarified that any calls utilizing AI to generate voices fall under the TCPA’s artificial or prerecorded voice rules. This ruling also established that:

  • • Consent must be obtained before making AI-generated voice calls (except for emergencies or exempted cases).
  • • Calls must include identification details regarding the party responsible for initiating the call.
  • • Call recipients must be given opt-out options.

Additionally, in June 2024, the FCC reached out to telecommunications providers to learn more about their methods for preventing AI-based fraudulent political robocalls. In the realm of broadcasting, the FCC is also considering requiring disclosures of AI-generated content in political ads on TV and radio.

Defining “AI-Generated Call” and Establishing New Disclosure Standards

Under the draft NPRM, an “AI-generated call” would encompass any outbound call utilizing computational technology, including predictive algorithms or large language models, to generate a synthetic voice or text for communication purposes. This definition would be restricted to outbound calls, excluding inbound call technology, like virtual customer support agents.

Proposed Consent and Identification Requirements

The NPRM aims to ensure that consumers are fully informed when consenting to AI-driven calls or texts:

  • • Voice Calls: Callers using AI-generated or prerecorded voices would need to disclose that the consumer’s consent includes receiving AI-generated calls.
  • • Text Messages: Callers sending autodialed text messages with AI-generated content must similarly disclose that consent includes receiving AI-driven text messages.

The FCC has also raised questions about requiring callers to offer an opt-out option specifically for future AI-generated calls.

In addition, the draft proposes requiring a distinct identification disclosure at the start of every AI-generated voice call. This could involve a specific tone, icon, or badge to signal to consumers that they are receiving an AI-generated call.

Exemption for Individuals with Speech or Hearing Disabilities

The FCC’s proposal would create a specific exemption under the TCPA rules for AI-driven calls made by individuals with speech or hearing disabilities. This exemption would apply to landline and wireless calls but exclude calls for telemarketing purposes. The FCC seeks public input on this exemption, citing a potential benefit to the public interest by helping individuals with disabilities communicate more effectively through AI-powered technology.

Exploring AI Detection, Alerting, and Blocking Technology

In a further effort to combat fraudulent or unwanted AI-generated calls, the draft NPRM solicits comments on the current availability and future potential of AI-based technologies for real-time call detection, alerting, and blocking. The FCC specifically wants input on technologies that:

  • • Analyze call content in real time to detect fraudulent or AI-driven robocalls.
  • • Alert consumers to potential fraud or AI involvement in incoming calls.
  • • Block future AI-generated calls based on analytic data patterns.

This provision reflects a broader FCC effort to explore how AI can be used to protect consumers from AI-based robocalls while addressing privacy concerns about call data analysis and storage.

Privacy Concerns and Data Protection

A significant portion of the NPRM is devoted to addressing privacy concerns associated with AI-based detection and blocking tools. The FCC has asked for feedback on how these technologies should handle call content data while ensuring adequate privacy protections for both callers and recipients. The NPRM explores whether additional federal or state privacy laws could enhance these protections and seeks input on how existing laws apply.

Cost-Benefit Analysis and Legal Authority for New Regulations

The FCC’s NPRM also includes a review of the potential costs and benefits of the proposed changes, specifically examining:

  • • The expected improvement in consumers’ ability to recognize and manage AI-driven calls.
  • • The financial impact on calling entities, including smaller businesses, to comply with new disclosure requirements.

Regarding the FCC’s legal authority to enact these rules, the draft NPRM highlights TCPA’s Section 227(d)(3), which allows the FCC to set technical standards for systems used in artificial or prerecorded voice calls. The FCC also cites Section 227(c), which mandates consumer privacy protection from unwanted calls. However, recent developments following the Supreme Court’s Loper Bright decision may lead to further discussion on the FCC’s regulatory authority over these AI-specific rules.

Comment Period and Next Steps for Stakeholders

The FCC has opened a comment period for stakeholders to provide feedback on the draft NPRM through July 31, 2024. Following the Open Commission Meeting, if the NPRM is adopted, a second opportunity to comment will occur once the proposed rule is published in the Federal Register. This regulatory development is likely to significantly impact industries that rely on outbound calling and texting services, as well as those in AI-driven detection and mitigation services.

Conclusion

The FCC’s draft NPRM represents an important step in addressing the challenges and opportunities presented by AI-generated communications. If adopted, these new regulations will introduce stricter standards for AI-driven calls and texts, aiming to enhance consumer protection against unwanted robocalls while supporting innovation in AI-powered telecommunications services. By establishing clear guidelines and inviting industry input, the FCC continues to position itself at the forefront of AI regulation within the communication landscape. For more information, the FCC encourages reaching out to AI and TCPA experts, such as those at Wiley.

 

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