The Competition Commission of India (CCI) has launched a study on the impact of artificial intelligence (AI) on competition, efficiency, and innovation in key user industries.
According to CCI, the study has been launched as a knowledge-building exercise to develop an in-depth understanding of the emerging competition dynamics in the development ecosystems of AI systems. It aims to understand the landscape and application of AI in Indian markets, examine existing legislations worldwide and in India, and ascertain enforcement and advocacy priorities of the CCI with respect to AI and its application in markets.
The CCI 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, start-ups, industry associations, independent developers, and customer firms.
In addition, other elements that will be covered include how do Al-driven personalised recommendations, services and pricing influence consumer welfare and choice, what are the synergies and risks that may stem from mergers and acquisitions (M&As) involving firms with Al capabilities, and what are the specific factors/parameters that need to be considered in assessing competitive effects of such M&As.
Through the study, CCI will also seek to understand the main sources of competitive advantage and disadvantage for Al adopters and non-adopters, and how Al technologies influence the entry and exit barriers, market concentration, innovation incentives, and market power of firms. Further, it will look to understand trends and patterns of Al and to ascertain enforcement and advocacy priorities of the CCI with respect to Al and its application in markets.
CCI has invited request for proposals from entities to carry out a detailed market study. The deadline for submissions is June 3, 2024 and after technical presentations by the entities, the deadline for the financial bids is June 28, 2024.
Furthermore, a high-powered committee led by the Principal Scientific Advisor to the government 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.
