Rules Navigator

UK competition watchdog launches initial review of AI models

Sarah Cardell, chief executive of the UK Competition and Markets Authority. Photo: gov.uk

Martina Lindberg

 Click to share on Facebook (Opens in new window/tab) Click to share on Twitter (Opens in new window/tab) Click to share on LinkedIn (Opens in new window/tab) Click to share on WhatsApp (Opens in new window/tab)

The Competition and Markets Authority (CMA) looks to protect market competition and consumer rights with its initial review on developments and use of AI foundation models.

This initial review is another step that the CMA has taken to ensure that it is proactive about the rise of new technologies such as foundation models, which include large language models and AI, and emerging markets.

“Our goal is to help this new, rapidly scaling technology develop in ways that ensure open, competitive markets and effective consumer protection,” the watchdog said.

“AI has burst into the public consciousness over the past few months but has been on our radar for some time. It’s a technology developing at speed and has the potential to transform the way businesses compete as well as drive substantial economic growth,” said Sarah Cardell, the CMA’s Chief Executive.

Many regulators and tech voices around the world have raised concerns about AI developments and issues around safety, security, copyright, privacy, and human rights, including how markets work.

To ensure that AI innovation continues in a direction that benefits both consumers, businesses and the UK economy, the government has asked the CMA and other regulators to examine how developments and deployments can be supported against these five overarching principles:

  • safety;
  • security and robustness;
  • appropriate transparency and explainability;
  • fairness; accountability and governance; and
  • contestability and redress.

Competition and consumer protection

In March, the UK government published an AI white paper, and the CMA’s review aligns with i’s work. “This white paper will ensure we are putting the UK on course to be the best place in the world to build, test and use AI technology”, Michelle Donelan MP, Secretary of State for Science, Innovation and Technology, said then.

“It’s crucial that the potential benefits of this transformative technology are readily accessible to UK businesses and consumers while people remain protected from issues like false or misleading information.”

Sarah Cardell, chief executive of the UK CMA

While many of these issues are being looked over by governments or other regulators, the CMA’s role is to support open and competitive markets, and this review will focus on questions like “what are the likely implications of the development of AI foundation models for competition and consumer protection?”. The CMA will seek to lay out how foundation models are developing, and produce guidance on conditions and principles for future developments of foundation models and their use.

Protecting consumers

Besides producing new guidance the CMA has also been given the power, within the government’s new Digital Markets, Competition and Consumers Bill, to tell technology companies how to treat their customers and implement fines up to 10% turnover for those who break the rules.

“It’s crucial that the potential benefits of this transformative technology are readily accessible to UK businesses and consumers while people remain protected from issues like false or misleading information. Our goal is to help this new, rapidly scaling technology develop in ways that ensure open, competitive markets and effective consumer protection,” Cardell said.

As part of the review, the CMA seeks views and evidence from stakeholders, and submissions can be provided until June 2. Then, a report following the CMA’s evidence gathering and analysis will be set out in September 2023.

, , , ,

You may also like