The Competition Commission of India (CCI) has already made a call of tendering from agencies or institutions seeking comprehensive market analysis which examine the dual effects of artificial intelligence on market competition, including the positive and negative ones, and the overall investigation aims to get insights toward AI’s power of transformation and its impact on market competition.
Simplified, AI means a set of technologies aimed at giving machines a higher level of understanding, a power that makes them akin to human beings in terms of perception, understanding, and action. It is gradually coming to be the innovative factor in the production process, alongside the traditional factors of production like labor, capital, and innovation, and in addition to that, contributing to the rate of technological advancement defined by total factor productivity.
In its official announcement, the Competition Commission of India (CCI) highlighted that the envisaged study aims to deepen comprehension regarding the transformative potential of AI and its influence on competition dynamics. The regulator emphasized that submissions for proposals will remain open until the 3rd of June.
This initiative forms an integral part of CCI’s advocacy endeavors, poised to serve as a valuable asset for both industry stakeholders and policymakers alike. CCI has a track record of conducting various studies across diverse sectors including mining, e-commerce, and film distribution, which have effectively identified significant market trends and instances of anti-competitive behavior. Notably, these studies have often catalyzed the formulation of policy recommendations.
The launch of the AI study coincides with the government’s efforts to establish a progressive regulatory framework for major players in the digital economy. CCI clarified that the study aims to delve into the AI ecosystem and its implications for competition within India. It seeks to uncover the transformative capacities of AI, which hold substantial pro-competitive promise, while also addressing concerns regarding potential competition issues stemming from its utilization, the regulator explained.
According to CCI, the core objective of the study is to cultivate a comprehensive grasp of the evolving competition dynamics surrounding AI systems. Additionally, it aims to explore the ramifications of AI applications on competition, efficiency, and innovation within pivotal user industries.
