Financial Crime World

DOJ Vows Stiffer Sentences for AI-Related White-Collar Crimes

New Enforcement Doctrine Seeks Harsher Penalties for AI Misuse

In a recent speech at the American Bar Association’s National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco announced that the Department of Justice (DOJ) will be seeking harsher penalties for individuals and corporations who use artificial intelligence (AI) to commit white-collar crimes.

Background

The rapid popularization of powerful commercial generative AI tools in late 2022 has left lawmakers struggling to formulate comprehensive AI regulation. As a result, enforcement agencies have stepped in to utilize their existing authority to reign in novel AI abuses.

Monaco’s remarks reinforced the impression that the DOJ is paying close attention to pursuing potential violations of the law abetted by AI. The agency will consider firms’ ability to manage AI-related risks as part of its overall compliance efforts.

  • AI Misuse: Monaco argued that since AI poses great risks to the public, and the DOJ has long used sentencing enhancements to seek increased penalties for criminals whose conduct presents especially egregious harm, the agency will now be seeking stiffer sentences for individual and corporate defendants alike where AI is deliberately misused to make a white-collar crime significantly more serious.
  • Compliance Efforts: The DOJ will consider firms’ ability to manage AI-related risks as part of its overall compliance efforts.

Implications for Firms

Monaco’s announcement is a significant development in light of the DOJ’s previous stance on AI-related misconduct. It remains to be seen how the courts will view this new enforcement doctrine. However, firms should pay careful attention to the strict enforcement stance taken by the DOJ regarding AI and ensure that they remain in compliance with applicable regulations.

  • Compliance: Firms should remain vigilant and ensure that their use of AI is compliant with applicable regulations.
  • Regulatory Environment: The Federal Trade Commission (FTC) has also been a key player in establishing itself as a premier AI regulator, going to great lengths to apply existing regulatory authority to the domain of AI.

Ongoing Monitoring

This article will continue to monitor, analyze, and report on the pronouncements and initiatives of the DOJ and FTC regarding AI. If you have any questions about current practices or how to proceed, please feel free to contact us.