Artificial Intelligence: CCI scouts for agency to conduct market study on AI and competition

With the growing importance of Artificial Intelligence (AI) across sectors, the Competition Commission of India (CCI)b plans to conduct a market study on ‘Artificial Intelligence and Competition’ to get inputs from stakeholders and develop a comprehensive understanding of the evolving landscape of AI and application of AI in markets in India.

Accordingly, the CCI on Monday issued a request for proposal to engage an agency to conduct the market study. “The study will help shape the strategies of the Commission aimed at fostering innovation and fair competition,” the CCI said.

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

The key focus of the study will be to understand the AI ecosystem, applications of the technology in user industries, its market size, its impact on competition in any sector as well as the regulatory and legal frameworks governing AI evolving in India and other major jurisdictions.

The study would also focus on how a competitive environment can be fostered that encourages development of AI by incumbents and entry of new innovators as well as strategies and measures that can be adopted for creating awareness and sensitising all stakeholders regarding the use of AI, its impact on competition and the necessary standard of compliance.

The agency would be expected to collate existing research and data and also speak to stakeholders. The last date for submission of bids is June 3 and the opening of financial bids is on June 26. The appointment would be communicated to the selected agency post approval.

The proposed market study on AI is the latest initiative by India’s anti-trust regulator to look into anti-competitive issues in the emerging digital economy. The CCI has also established a digital markets and data unit to look into the issues in the sector. Recent amendments to the Competition Act are also expected to help the regulator keep a closer watch on anti competitive behaviour by Big Tech firms while a proposed digital competition law is also in the works.