UK Antitrust Watchdog Launches Review Into AI Market

The UK’s antitrust watchdog launched a wide-ranging market review into the development of AI as authorities grapple with how they can regulate the rapidly evolving technology.

(Bloomberg) — The UK’s antitrust watchdog launched a wide-ranging market review into the development of AI as authorities grapple with how they can regulate the rapidly evolving technology.

The Competition and Markets Authority announced on Thursday an initial review to examine developments foundational artificial intelligence models and the impacts of the technology on market competition in the tech sector. The CMA called for evidence to assess how companies develop their AI products with suitable consumer protections that consider safety, security and transparency. 

Expansion in the capabilities of AI, seen in products like OpenAI’s ChatGPT, has driven tech companies to accelerate investment into the sector. Concerns over a lack of legislation to meet the needs of the rapidly evolving technology has seen authorities across the globe attempt to put up guardrails. 

“It’s crucial that the potential benefits of this transformative technology are readily accessible to UK businesses and consumers while people remain protected from issues like false or misleading information,” said Sarah Cardell, the CMA’s chief executive officer. “Our goal is to help this new, rapidly scaling technology develop in ways that ensure open, competitive markets and effective consumer protection.”

The CMA will publish its full report in September. 

In the US, Vice President Kamala Harris will meet with top AI developers such as Alphabet Inc., Microsoft Corp., and OpenAI Inc. on Thursday as part of the Biden administration’s efforts to get industries to self regulate. Meanwhile, the EU has already begun to look into how language AI models will affect market competition. 

“The EU’s digital markets act that came fully into force this week does not cover generative AI and the CMA no doubt sees this as an opportunity to be leading the global debate on these issues – along with the US FTC which is already looking at the area,” said Verity Egerton-Doyle, a lawyer at Linklaters.

Big tech companies have become a target for the CMA in the last few years, and the agency has expanded its powers to clamp down on the industry. Those include new digital competition rules and regulations that will further boost its powers to clamp down on the sector’s most powerful companies.

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