The AdC published an Issues Paper addressing competition issues in Generative Artificial Intelligence (AI). Generative AI is the artificial intelligence capable of generating new contents, such as text, image, video or audio.
In this Issues Paper, the AdC maps the key determinants that affect the competitive process and anticipates the risks to competition in the Generative AI sector.
Generative AI is a poster child for all the competition challenges already identified in the digital sector. Generative AI models are hungry for data and computing power, entailing strong scale effects. These effects may result in accumulated competitive advantages to digital incumbents, as they already have access to large volumes of data and computing power. These characteristics makes markets prone to high levels of concentration.
As is the case with other digital markets, these characteristics may raise risks to competition, particularly exclusionary strategies, in the markets for cloud computing, hardware and Generative AI models.
As such, the focus of competition in the context of Generative AI will necessarily lie on the following cornerstones of competition: (i) access to data, (ii) access to cloud computing or specialised hardware and (iii) access to foundation models in Generative AI.