A recent research by the Competition Commission of India (CCI) found that the use of AI technology is expanding quickly in India across a range of user industries, changing company operations, regulatory responses, and competition dynamics.

Although the introduction of AI has brought about significant improvements in productivity, creativity, and customer satisfaction, the study pointed out that new problems are starting to arise that could affect competition either directly or indirectly and prevent AI from reaching its full potential.

It looked closely at each of these elements and reviewed how legal and regulatory frameworks in India and other countries have changed to keep up with the quick development of artificial intelligence.

In order to comprehend AI markets and ecosystems, identify new and possible competition issues, and examine current and developing regulatory frameworks governing AI systems, the Management Development Institute Society (MDIS) conducted a report titled “Market Study on Artificial Intelligence and Competition.”

To provide a comprehensive and in-depth understanding of the various objectives, the study used both primary and secondary research methods, such as database analysis, semi-structured and structured interviews, stakeholder surveys, and literature reviews.

“The study has contributed to the collection of valuable information and insights regarding the structure of the AI ecosystem, market trends, AI application in user industries, possible competition issues in the AI industry and user industries, and other pertinent aspects,” the CCI stated.

The paper suggests several actions to safeguard consumer welfare, stop AI-driven anti-competitive behavior, and encourage the growth of a competitive AI ecosystem in India.

In order to achieve this, CCI will engage with international competition authorities and multilateral competition platforms, organize a conference on “AI and regulatory issues” in collaboration with pertinent stakeholders, hold targeted advocacy workshops on “AI and Competition Compliance,” concentrate on enhancing its technical capabilities and infrastructure, establish a think tank to share knowledge on issues pertaining to digital markets with a particular focus on AI, and take action to encourage inter-regulatory coordination.

Businesses are encouraged to implement transparency measures to lessen information asymmetry and to incorporate self-audit of AI systems for competition compliance in order to guarantee responsible autonomy while shielding markets from distortions. This will enable businesses to proactively identify and address possible competition concerns.