India To Conduct Study On AI Implications For Competition, Efficiency, Innovation

The Competition Commission of India has invited proposals to conduct a market study on artificial intelligence and competition to assess AI's pro-competitive potential and issues arising from the use of AI for competition.

The proposed study will be a knowledge-building exercise to develop an understanding of the emerging competition dynamics in AI systems and the implications of AI applications for competition, efficiency and innovation in key user industries, the antitrust watchdog said in a statement.

“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,” CCI said.

The study aims to understand aspects related to AI actors and stakeholders, essential inputs and resources, value chains, market structures and parameters of competition. It proposes to study the scope and nature of AI applications and use cases and assess associated opportunities, risks and ramifications from a competitive standpoint.

The study also seeks to understand the existing and evolving regulatory and legal frameworks governing AI systems and applications in India and other major jurisdictions. It aims to engage with relevant stakeholders to gain a holistic understanding of the technology's issues.

It also aims to understand trends and patterns in AI and to ascertain the enforcement and advocacy priorities of the commission with respect to AI and its application in markets.

According to CCI, the proposed study will gather data from technology companies, startups, investors, trade associations, independent developers and customer firms.

The government is proposing the study at a time when it is drafting a new law to create a progressive regulatory framework for businesses in the digital economy.

The framework for AI is being developed by a committee led by the principal scientific advisor to the Government of India and may be introduced after the Lok Sabha elections, according to sources.