The Competition and Markets Authority (CMA), the UK’s competition watchdog, has reportedly expressed concern about a “real risk” that the artificial intelligence (AI) industry could grow in a way that would allow a select few companies to dominate the market and expose consumers to harmful information.
The CMA analysed AI Foundation Models in a study released on September 18 and came to the conclusion that while AI has the ability to alter how people live and work, these changes may occur swiftly and have a substantial impact on consumers and competition. The regulator issued a warning, saying that short-term consumer exposure to substantial quantities of false information or AI-enabled fraud could result from inadequate competition or developers’ disregard for consumer protection regulations.
Long-term market power positions could be acquired or entrenched by a small number of companies, causing them to not provide the best goods or services or to impose exorbitant costs. The CMA offered a number of “guiding principles” to promote consumer protection and healthy competition while enabling full economic rewards in order to prevent these outcomes. These guidelines emphasise expanding accessibility and transparency, especially when it comes to prohibiting businesses from utilising AI models to their benefit.
Early in 2024, the UK competition regulator expects to release an update on the principles and their application as well as information on future advancements in the AI ecosystem. The CMA has already communicated with companies using and developing AI. The UK has already issued warnings regarding the rapid advancement of AI. According to Matt Clifford, a member of the British prime minister’s AI task committee, the technology will need regulation and oversight within the next two years to reduce serious existential dangers. Additionally, the parent firm of ChatGPT, OpenAI, was cautioned about its data harvesting practises in June by Japan’s privacy authorities.
