CCI set to study impact of AI on competition, efficiency and innovation

"The transformative capabilities of AI have significant pro-competitive potential; at the same time, there may be competition concerns emanating from the use of AI," the CCI stated

The Competition Commission of India (CCI) has invited proposals to launch a study on the impact of artificial intelligence (AI) on competition, efficiency and innovation in key user industries, a press statement said.

“The transformative capabilities of AI have significant pro-competitive potential. At the same time, there may be competition concerns emanating from the use of AI,” the CCI said.

The study would be launched as a knowledge-building exercise, the CCI said. It is to develop an in-depth understanding of the emerging competition dynamics in the development of AI systems.

It aims to understand the landscape and application of AI in the Indian markets. It also examines existing legislations worldwide and in India, and ascertains enforcement and advocacy priorities of the commission with respect to AI and its application.

The antitrust watchdog plans to engage with stakeholders to explore the scope and nature of AI use cases and their effects on competition.

The study will collect data from technology firms, investors, startups, industry associations, independent developers, and customer firms.

Stating the objectives of the study, the CCI said it would aim  to understand certain key AI systems and markets, ecosystems, including AI actors, stakeholders, essential inputs and resources, value chains, market structures and parameters of competition.

The CCI has issued a request for proposals from agencies to conduct the market study. The deadline for submission is June 3.

Meanwhile, a high-powered committee, led by the principal scientific advisor to the Government of India, is developing a framework for AI.

This committee includes representatives from various ministries, academia, industry associations such as NASSCOM, and think tanks like the Indian Software Product Industry Round Table.

Sources indicate that a dedicated regulation or a comprehensive framework for AI may be introduced after the Lok Sabha elections.

India currently lacks a policy framework to govern AI, amid growing concerns about the potential harms and risks associated with it.

Previously, the ministry of electronics and information technology issued advisories asking intermediaries and AI platforms to manage the risks from the use of AI. It also called for ensuring that biases in AI models do not adversely affect Indian users.

Discussions around AI had started in the government around 2018 when the NITI Aayog released a paper titled “National Strategy for Artificial Intelligence.”

Among other recommendations, NITI Aayog emphasised on the appropriate handling of data. It also called for ensuring privacy and security through the establishment of data protection frameworks and the creation of sectoral regulatory frameworks.

A bid to... 

> Develop understanding of the emerging competition dynamics in the development of AI systems

> Understand the landscape and application of AI in the Indian markets

> Examine existing legislations worldwide and in India

> Collect data from various sources including technology firms, investors, industry associations

> Engage with stakeholders to explore the scope of AI use cases