UK's CMA Raises Concerns Over Potential Market Dominance in Rapidly Growing AI Industry
Summary:
The UK's Competition and Markets Authority (CMA) warns of the risk of few firms dominating the rapidly growing Artificial Intelligence (AI) industry. Its report surveyed AI Foundation Models, emphasizing that if competition is weak or laws protecting consumers are ignored, there are dangers like misinformation and AI-facilitated fraud. The CMA suggested guiding principles to increase transparency and access, prevent firms from exploiting AI models, and balance consumer protection with competitive health. An update on these principles will be published in 2024. Earlier concerns over swift AI advancements from UK and Japan's watchdogs were also acknowledged.
The brisk development of the artificial intelligence (AI) industry presents a real risk of market domination by a few firms, warns the United Kingdom's competition regulator, the Competition and Markets Authority (CMA). In its report published on September 18, the CMA studied AI Foundation Models and recognised the transformative potential of AI. However, quick and extensive changes could negatively impact competition and consumers, the regulator stressed. They added that consumers risk exposure to significant misinformation and AI-facilitated fraud in the short term if market competition is feeble or developers neglect consumer rights laws. Looking ahead, dominant market positions may be seized or consolidated by a few firms, potentially compromising the quality of their products and services and leading to inflated prices. To avert such developments, CMA's CEO Sarah Cardell insists, "We must ensure AI is used in a way that respects consumer trust and that power in the market is not concentrated among a few dominant players, obstructing broad economic benefit." To this effect, the watchdog has suggested various guiding principles to balance consumer rights and competitive health while maximising economic benefits. These principles seem centered on enhancing accessibility and transparency, especially concerning the use of AI models by companies. An update of these principles and how they are adopted will be published by the competition watchdog in early 2024, along with updates on the AI ecosystem. The regulator has already begun discussions with AI developers and businesses. The UK has previously voiced concern over fast-paced AI advancements. Matt Clifford, an AI advisor to the British Prime Minister, indicated in June the need for regulatory control over AI within two years to mitigate significant existential threats. Similarly, OpenAI, parent company of ChatGPT, faced data collection method warnings from Japan's privacy watchdog in June.
Published At
9/19/2023 6:21:06 AM
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