ARTIFICIAL INTELLIGENCE: “MADE BY AI” & “HUMAN CENTERED” LABELS
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The connection between AI’s introduction and resulting human job loss is indisputable. The rapid integration of AI carries significant implications for the market for human labor, yet consumers lack meaningful avenues to counter these effects. Currently, there is insufficient information for consumers to make informed choices in line with any human-centric preferences. In Recoding A(I) to A(We): Addressing Information Asymmetries for Shared Prosperity, Litteral LLP Partners, Sean L. Litteral and Elvia M. Lopez, propose a “disclosure-based system that allows consumers to distinguish AI and human creations,” including through the use of “Made by AI” and “Human Centered” labels.
Importantly, “Made by AI” and “Human Centered” labels would promote consumer choice regarding related shifts in the labor market. As described, the introduction of AI into the labor market begins with the gradual trimming down of the workforce and the assignment of related responsibilities to AI. Consequently, researchers such as those at Goldman Sachs estimate that “roughly two-thirds of US occupation are exposed to some degree of automation by AI” with “roughly a quarter to as much as half of their workload” subject to replacement. This trend is taking place as companies strive to lower their bottom-line, opting for efficiency-related gains at the expense of human employees.
The proposed labeling regime would also help stem consumer deception. Early adopters of AI have witnessed consumer backlash for the displacement of creatives. Though such AI-generated works may present as technically impressive, study after study confirms a preference for human creations upon learning that a creation is made by AI. There is also an indication that consumers are willing to pay more for human creations, prefer engaging with human service providers, and are more likely to take their business elsewhere when faced with AI-generated mistakes.
Based on comparable findings, policymakers have established the “Made in America” labeling regime geared toward supporting domestic jobs, delivering high-quality products and promoting patriotism. Similar to the “Made in America” label, Litteral LLP Partners propose “Made by AI” and “Human Centered” labels. Each label presents its own framework and corresponding benefits, including facilitating transparency, informing consumers’ decisions, and preserving the market for human services and creations.
In the context of the “Made by AI” framework, creations generated by AI would be required to prominently display that label. In contrast, the “Human Centered” label would serve as an optional disclosure that will allow such works to stand out as premium. As proposed, such disclosures would be enforceable by federal and state law via the Federal Trade Commission Act and consumer protection statutes like California’s Consumer Legal Remedies Act.
In an effort to promote public discourse, Litteral LLP will continue to publish its series focusing on the policy proposals in Recoding A(I) to A(We). Any individual considering legal recourse resulting from the development, deployment, or use of AI should consult a qualified attorney who can evaluate the applicable laws, relevant legal developments, and specific facts of a given case.
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