UK competition watchdog has 'serious concerns' about the dominance of big tech AI

Big Tech's dominance in the rapidly evolving artificial intelligence (AI) market is a “genuine concern”, the competition regulator has warned.

The Competition and Markets Authority (CMA) is considering a new breed of powerful AI tools: Foundation Models.

These include text and image generators such as ChatGPT.

The CMA found an “interconnected web” of AI partnerships involving the same companies: Google, Apple, Microsoft, Meta, Amazon and chipmaker Nvidia.

CMA chief executive Sarah Cardel said: “When we started this work we were curious. Now that we have a better understanding and have been closely monitoring developments, we are deeply concerned.” Told.

“The essential challenge we face is how to leverage this incredibly exciting technology to the benefit of everyone, while preventing the potential exploitation of market power and unintended consequences.” I mean.”

The CMA said a small number of incumbent technology companies that are already strong in the most important digital markets are also now taking the lead in foundational models.

Trained on vast amounts of data, these tools power tools that are transforming the workplace and other aspects of modern life.

According to the CMA, large tech companies hold strong positions in terms of computing power, have access to skilled employees and can influence market access through their apps and platforms. It is said that there is.

This could have a significant impact on fair competition and could lead to “reduced choice, lower quality, higher prices, etc., ultimately harming businesses and consumers, as well as potentially setting precedents.” The CMA argued that this could “impede the flow of innovation and broader economic benefits from AI”.

The CMA said it wanted to learn from previous experience in the “winner-take-all” digital market, which has resulted in the rise of a few powerful platforms.

The company said it was “determined to apply the lessons of history” to a “pivotal moment in the emergence of potentially transformative new technologies.”

The new paper found more than 90 related investments and partnerships involving the same handful of technology giants.

The watchdog has already begun reviewing Microsoft's multibillion-dollar partnership with OpenAI.

But the company said it recognizes “the tremendous resources, expertise and innovation capabilities that these large companies can bring to the table.”

However, these should not “isolate” leading companies from competition.