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The UK’s competition watchdog has ‘real concerns’ over the dominance of big tech AI
The dominance of big tech in the booming artificial intelligence (AI) market is “worrying”, competition regulators have warned.
The Competition and Markets Authority (CMA) is investigating a new breed of AI-powered tool – the basic model.
It includes text and image generators, like ChatGPT.
The CMA found an “intertwined web” of AI partnerships involving the same firms: Google, Apple, Microsoft, Meta, Amazon and chipmaker Nvidia.
“When we started this work, we were curious. Now, with a deeper understanding and having seen developments very closely, we have real concerns,” said Sarah Cardell, chief executive of the CMA.
“The key challenge we face is how to leverage this very exciting technology for the benefit of all, while protecting against the potential exploitation of market forces and unintended consequences.”
Ms Cardell delivered the warning in a speech on Thursday in Washington.
The CMA said that a small number of existing technology firms – already powerful in the most important digital markets – are also now leading the way in basic models.
Trained using vast amounts of data, they support tools that are changing the workplace and other aspects of modern life.
What is AI and how does it work?
Big tech firms have a strong position in terms of computing power, and access to skilled workers, the CMA said, and can influence access to markets through applications and platforms.
This could have a major impact on fair competition “ultimately harming businesses and consumers, for example through reduced choice, lower quality and higher prices, as well as stifling the potentially unprecedented flow of innovation and wider economic benefits from AI” , said the CMA.
Important moment
The CMA said it wanted to learn from previous experiences in digital markets where “winners take all dynamics” led to the rise of a small number of powerful platforms.
It said it was “determined to apply the lessons of history” to what it called “an important moment in the emergence of potentially transformative new technologies.”
In the new paper, it found more than 90 related investments and partnerships involving the same number of tech giants.
The watchdog is already conducting a review of Microsoft’s multibillion-dollar partnership with OpenAI.
But it said it recognized “the enormous wealth of resources, expertise and innovation capabilities that this large firm can bring”.
However, this should not “block” powerful firms from competition.
