The United Kingdom’s competition watchdog has expressed concerns about the potential for a small number of firms to dominate the artificial intelligence (AI) industry, which could lead to consumers being exposed to harmful information. In a report released on September 18, the Competition and Markets Authority (CMA) examined AI Foundation Models and highlighted the rapid changes that AI could bring to people’s lives and work, emphasizing the impact on competition and consumers.
The CMA warned that if competition remains weak or developers disregard consumer protection laws in the short term, consumers may be exposed to significant levels of false information or AI-enabled fraud. In the long term, there is a risk that a few firms could consolidate their market power, potentially resulting in subpar products, services, or high prices.
To address these concerns, the CMA proposed a set of guiding principles aimed at ensuring consumer protection and healthy competition while allowing for the full economic benefits of AI. These principles focus on increasing access and transparency, particularly in preventing firms from gaining unfair advantages through the use of AI models.
UK CMA Raises Concerns Over AI Industry Dominance and Consumer Risks
The UK competition regulator plans to publish updates on the adoption of these principles in early 2024 and will continue engaging with AI developers and businesses deploying AI technology.
These concerns highlight the need for responsible development and regulation in the AI industry to ensure that AI technologies benefit society without causing harm to consumers or competition.