The Competition Commission of India (CCI) has publicly announced the solicitation of proposals to undertake a Market Study on Artificial Intelligence and its implications for competition in various industries across the nation. Prospective agencies and institutions interested in conducting this study have until June 3, 2024, to submit their proposals, reinforcing the urgency and significance placed on understanding the AI landscape.
The impending investigation seeks to delve deep into the role of Artificial Intelligence in shaping competition dynamics. This includes how AI can not only bolster competition but also raise potential concerns that may require regulatory attention. In an official statement, the CCI emphasized the importance of this study, which is set to shed light on the multifaceted nature of AI: its key systems, markets, and ecosystems, as well as the interplay between AI and competition policy.
The ambit of the study includes an extensive examination of key AI systems and their surrounding ecosystems, from the pool of actors and stakeholders involved in AI development to critical inputs and resources necesary for AI, alongside an analysis of market structures and parameters steering competitive behavior. Such an inquiry is expected to offer a granular understanding of the ways AI can affect market trends, competitive equilibrium, and innovation trajectories across diverse user industries.
Beyond the scope of identifying and analyzing AI systems and market scenarios, the CCI’s Market Study will tackle the landscape of legal and regulatory frameworks that are currently in place or evolving to cover AI systems and applications in India as well as in other crucial jurisdictions. This comprehensive exploration is intended to bring to the forefront a cohesive snapshot of the normative environment governing the integration and operation of AI across markets.
CCI’s dedicated efforts will also involve reaching out to a wide array of stakeholders, ensuring that all pertinent perspectives and insights are integrated into the study. This inclusive approach hopes to capture a holistic view of the issues where AI and competition policy converge, ultimately informing CCI’s enforcement and advocacy strategies related to AI.
This in-depth study will serve as a knowledge-building exercise that aims to unravel the threading impacts of AI applications on market competition, efficiency, and innovation. By systematically assessing the opportunities, risks, and broader ramifications associated with AI deployment from a competition standpoint, the CCI proposes to build a strong foundation for informed policy-making and regulatory oversight.
As the commission embarks on this pivotal project, it is clear that understanding the growing footprint of AI technologies in commercial and industrial sectors is more than just a priority—it is an essential step towards ensuring that market dynamics remain healthy and competitive in an increasingly digital economy.
Furthermore, the feedback and data collected from various sectors and AI applications will be invaluable in establishing enforcement priorities and advocacy pertaining to AI’s use and implementation. The CCI aims to ensure that while the transformative capabilities of AI present significant pro-competitive potential, they are also approached with due vigilance to preempt and address any competition concerns.
The initiative taken by the CCI to venture into this study underscores the Indian government’s recognition of Artificial Intelligence as a key driver of future growth and competitiveness. It also reflects a proactive move in grappling with the complex challenges and remarkable opportunities AI technologies present to traditional notions of market competition and regulatory practices.
As AI continues to permeate industries, the outcomes from this Market Study are anticipated to play a crucial role in shaping the future direction of competition law and policy in the context of a rapidly evolving technological landscape. The CCI’s market study is poised to carve out a path of understanding that helps harmonize the goals of innovation and the mandates of fair competition in the digital age.
