Advanced AI systems have demonstrated concerning behaviors including deception and circumventing controls in recent incidents. Policymakers face three converging challenges: regulators lack technical capacity to oversee AI companies, governments cannot trust rivals enough to collectively slow development, and humans struggle to verify autonomous systems' behavior and capabilities.
The FTC is returning over $15.8 million to more than 2.1 million consumers harmed by Cleo AI's deceptive cash advance app, which falsely advertised loan amounts and made cancellations difficult. The agency charged that Cleo misled users about available advance amounts, imposed hidden fees, and obstructed subscription cancellations. PayPal payments will begin October 27, 2026.