FTC Chair Warns of AI Bias, Calls for Regulation
Locales: District of Columbia, UNITED STATES

Washington D.C. - February 12th, 2026 - Federal Trade Commission (FTC) Chair Lina Khan delivered a stark warning today regarding the potential for serious political bias embedded within artificial intelligence (AI) systems, calling for significantly increased government regulation to mitigate the risks. Speaking at a Brookings Institution event, Khan detailed how the pervasive integration of AI into crucial aspects of modern life necessitates proactive intervention to protect consumers and ensure equitable outcomes.
Khan's concerns center on AI's expanding influence in areas directly impacting individuals' livelihoods and access to opportunity. From the algorithms determining which advertisements consumers see, to the systems assessing creditworthiness, evaluating job applications, and even influencing healthcare and educational opportunities, AI is increasingly shaping life outcomes. This growing role, she argues, demands a robust regulatory framework to prevent discriminatory practices and the perpetuation of existing societal inequalities.
"The degree to which AI is being deployed in so many aspects of our lives... really underscores the importance of robust regulatory oversight," Khan stated. "The risk of AI reinforcing and amplifying existing biases is very real and that is something that we have to take seriously." She emphasized that the often-touted neutrality of AI is a dangerous misconception. "The notion that AI is inherently neutral is a myth," she asserted, "These systems are built by people, and they reflect the values and biases of the people who create them."
This isn't merely a theoretical concern. AI models are trained on massive datasets, and if those datasets contain inherent biases - reflecting historical discrimination or societal stereotypes - the resulting AI systems will inevitably perpetuate and amplify those biases. For example, an AI used in hiring might be trained on historical data showing a disproportionate number of men in leadership positions. Consequently, the AI could unfairly prioritize male candidates, even if equally qualified female candidates apply. Similarly, AI-driven credit scoring systems trained on biased data could deny loans to individuals from marginalized communities at a higher rate.
Khan expressed skepticism about the effectiveness of self-regulation by AI companies. Referencing past instances in other technological sectors, she noted that voluntary compliance often falls short of addressing systemic issues. "We've seen in other areas of technology that self-regulation often falls short," she explained. "We need a more proactive regulatory approach to ensure that AI is used in a way that is fair and equitable." This proactive approach, she hinted, would likely involve greater FTC scrutiny, potentially including enforcement actions against companies deploying biased AI systems.
The call for regulation comes as scrutiny of AI companies and their practices intensifies globally. The FTC has already initiated investigations into the potential harms of AI, and Congress is actively debating legislation to establish a comprehensive regulatory framework. While the United States continues to grapple with the appropriate level of oversight, the European Union has taken a decisive step with the approval of the Artificial Intelligence Act, which is set to take full effect this year - 2026. This act categorizes AI systems based on risk, imposing stricter regulations on high-risk applications like those used in critical infrastructure, healthcare, and law enforcement.
The EU's approach, which prioritizes transparency, accountability, and human oversight, is increasingly being viewed as a potential model for other nations. However, the specifics of AI regulation remain a complex and contentious issue. Key debates include defining "high-risk" AI applications, establishing standards for data quality and bias detection, and ensuring that AI systems are explainable and auditable. Some critics argue that overly strict regulations could stifle innovation, while proponents maintain that protecting fundamental rights and ensuring fairness are paramount.
Khan's remarks today are a clear signal that the FTC intends to play a leading role in shaping the future of AI regulation in the United States. As AI continues to permeate every aspect of modern life, the need for thoughtful and effective oversight becomes increasingly urgent. The challenge lies in balancing the potential benefits of AI with the critical need to mitigate its risks and ensure that this powerful technology serves the interests of all citizens, not just a select few.
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