CCI initiates market study on AI’s evolution

The Competition Commission of India (CCI) is set to embark on a comprehensive market study focused on artificial intelligence (AI), aiming to gain insights into its evolving landscape and diverse applications across Indian markets. Ravneet Kaur, the head of CCI, announced this initiative during the 9th conference on the Economics of Competition Law.

The move comes in the wake of a recent controversy surrounding Google’s AI platform’s response to queries related to Prime Minister Narendra Modi. The Indian government, responding to this incident, issued an advisory on March 1, directing social media and other platforms to label under-trial AI models and take measures to prevent the hosting of unlawful content.

Kaur emphasised the importance of understanding the dynamic landscape of AI and its applications in shaping the strategies of the commission. The market study is poised to offer valuable insights that can foster innovation and ensure fair competition within the AI sector. 

AI applications have witnessed a surge in prevalence across various sectors in India. In January, Kaur had already hinted at the CCI’s intention to initiate a study on artificial intelligence in businesses and services. This proactive approach underscores the regulatory body’s commitment to staying ahead of the curve in understanding the implications and impact of AI on the market.

The government’s advisory, issued in response to the Google AI incident, specifically targets significant players and untested platforms, exempting startups. Minister of State for Electronics and IT, Rajeev Chandrasekhar, clarified that the directive applies to all digital platforms.

These platforms are now mandated to ensure that the use of AI models, large language models, generative AI, software, or algorithms does not facilitate the hosting, display, upload, modification, publication, transmission, storage, update, or sharing of any unlawful content.

Notably, the advisory places restrictions on the use of under-testing and unreliable AI models, generative AI, etc. The explicit permission of the government is required for the deployment of such models on Indian internet platforms, and they must be labeled to highlight the possible fallibility or unreliability of the generated output.

As India grapples with the challenges and opportunities presented by the growing influence of AI, the CCI’s market study is poised to play a crucial role in shaping regulatory frameworks, fostering innovation, and ensuring fair competition within the rapidly evolving AI landscape. This proactive stance aligns with the broader global trend of regulatory bodies adapting to the transformative impact of artificial intelligence technologies.