As artificial intelligence (AI) continues to advance at a remarkable rate, regulatory bodies worldwide are taking significant steps to ensure this transformative technology benefits society while mitigating potential risks. A noteworthy development in this regard is the joint statement signed by the European Commission, the UK Competition and Markets Authority (CMA), the US Federal Trade Commission (FTC), and the US Department of Justice. This statement articulates shared principles aimed at protecting competition and consumers in the realm of AI, particularly focusing on powerful foundation models.
The joint statement underscores the shared perspective of these agencies that AI has the potential to drive innovation, spur economic growth, and bring about positive changes in how we live and work. However, it also acknowledges that these technologies may pose risks to competition and consumers, necessitating proactive measures to prevent any entrenched or irreversible harms.
The agencies have identified fair dealing, interoperability, and choice as the cornerstone principles to support competition, protect consumers, and foster business innovation. These principles are designed to ensure that the development and deployment of AI technologies are conducted in a manner that promotes a level playing field and prevents monopolistic practices. Fair dealing emphasizes the importance of ethical practices and transparency in AI development, aiming to prevent deceptive practices and ensure that consumers are well-informed about the AI technologies they interact with. Interoperability, on the other hand, is crucial for fostering innovation and competition, allowing smaller firms to compete with larger entities by integrating their solutions into existing ecosystems. Lastly, the principle of choice ensures that consumers have the freedom to choose between different AI solutions, preventing market dominance by a few large players and encouraging a diverse range of AI products and services.
Recognizing the global nature of AI markets, the agencies have committed to sharing an understanding of the issues arising in these markets. They plan to use their respective powers to tackle potential risks to competition posed by AI foundation models. These risks include the concentration of control over key inputs needed for AI development and the potential for firms to entrench or extend their market power in AI-related markets. Sarah Cardell, CMA Chief Executive, highlighted the borderless nature of AI technology and its potential to drive innovation and growth worldwide. She emphasized the importance of international cooperation to ensure fair, open, and effective competition in AI, which in turn drives positive societal change.
The joint statement marks a significant milestone in the CMA’s ongoing efforts to regulate AI foundation models. In April 2024, the CMA published an update outlining six principles to support competition and consumer protection as AI technologies continue to evolve. These principles are designed to provide a robust framework for AI governance, ensuring that the technology’s benefits are maximized while its risks are mitigated. The UK government’s AI Regulation White Paper, published in March 2023, outlines a “proportionate and pro-innovation regulatory framework” for AI. This framework is designed to support innovation, identify and address risks, and establish the UK as an “AI superpower.” The White Paper proposes a sector-led approach, relying on existing regulators to address AI-related risks within their respective domains. However, it also highlights the need for international cooperation, particularly with the European Union, to ensure the effectiveness of AI governance initiatives.
Globally, there are over 800 AI policy initiatives from at least 60 countries, most of which have been introduced since 2016. The UK ranks second only to the US in terms of the number of national-level AI policies released. However, the effectiveness of these policies will depend on international collaboration and the ability to address both domestic and global challenges. Moving forward, it will be essential for these regulatory bodies to continue their dialogue and collaboration. The dynamic nature of AI technologies means that regulatory frameworks will need to be adaptable and responsive to new developments. By working together, the UK, US, and EU can set global standards for AI governance that promote innovation, protect consumers, and ensure fair competition.
The joint statement by the European Commission, the UK CMA, the US FTC, and the US Department of Justice represents a significant step towards ensuring fair competition and consumer protection in the rapidly evolving field of AI. By focusing on principles such as fair dealing, interoperability, and choice, these agencies aim to create a regulatory environment that fosters innovation while mitigating potential risks. As AI technologies continue to develop, international cooperation will be crucial to ensuring that their benefits are realized while their risks are effectively managed. By aligning their regulatory approaches and sharing insights, these global entities can create a robust framework for AI governance that benefits society as a whole. As AI continues to transform various sectors, this collaborative approach will be crucial in ensuring that its development and deployment are conducted in a manner that is ethical, transparent, and fair.
