H.R. 1027: Quashing Unwanted and Interruptive Electronic Telecommunications Act

This bill, known as the Quashing Unwanted and Interruptive Electronic Telecommunications Act (or QUIET Act), proposes several amendments to the Communications Act of 1934 aimed at addressing concerns related to robocalls that utilize artificial intelligence (AI).

Key Provisions of the Bill

• Disclosure Requirement for AI Robocalls: The bill mandates that any person or entity making a robocall using AI to simulate a human voice must clearly disclose this fact at the beginning of the call or text message. This applies specifically to calls where AI technology is used to emulate a human being.
• Definition of Robocalls: The bill outlines what constitutes a robocall, specifying that it includes calls made or texts sent using automated systems that use stored telephone numbers or randomly generated numbers and include an artificial or prerecorded voice.
• Enhanced Penalties for AI Impersonation: The bill proposes increased penalties for violations involving the use of AI to impersonate individuals or entities. If a violation involves AI impersonation with the intent to defraud or cause harm, the maximum monetary penalties would be doubled compared to existing limits.
• Applicability of Enhanced Penalties: The enhanced penalties would only apply to violations occurring after the enactment of this bill.

Goals of the Bill

The primary aim of the QUIET Act is to protect consumers from deceptive practices in telecommunications that involve AI technologies. By requiring disclosures for AI-driven robocalls and imposing stricter penalties for fraudulent behavior using AI, the bill seeks to reduce the incidence of unwanted and potentially harmful communications.

Relevant Companies

• VMW (VMware, Inc.): As a company involved in cloud infrastructure and digital workspace technology, VMware may be indirectly affected by changes in telecommunications regulations related to AI usage.
• AMZN (Amazon.com, Inc.): Amazon's services, including its customer service operations which could employ AI for communications, may be impacted by the requirements introduced under this bill.
• GOOGL (Alphabet Inc.): Google's telecommunications and advertising aspects that may rely on AI could be impacted directly by these regulations, especially if used for marketing through robocalls.