The Competition and Markets Authority (CMA) in the United Kingdom is expressing apprehension about the increasing dominance of Big Tech companies in the advanced artificial intelligence (AI) sector, with CEO Sarah Cardell voicing “real concerns” over the industry’s trajectory.
In a paper focused on foundational AI models released on April 11, the CMA highlighted the growing interconnection and concentration among developers in the cutting-edge tech sector, particularly noting the surge in generative AI tools.
The paper underscores the consistent involvement of major players like Google, Amazon, Microsoft, Meta, and Apple (GAMMA) across various facets of the AI value chain. While acknowledging potential benefits of partnership arrangements, the CMA also warns against the risks posed by dominant partnerships and integrated firms, which could undermine competition.
The CMA expressed concerns about the development of the foundational model (FM) sector, highlighting risks to fair competition, including firms controlling vital inputs for AI models, tech giants leveraging dominance to influence choices, and partnerships reinforcing market power.
During a legal event in Washington, D.C., Cardell emphasized the “winner-take-all dynamics” reminiscent of earlier web development eras and urged regulators to avoid repeating past mistakes in overseeing this next phase of digital evolution.
The CMA’s update report outlines “indicative factors” that may raise concerns regarding FM partnerships and highlights its examination of the high-end AI market since May 2023. The regulator aims to ensure responsible development of generative AI through informed supervision and intervention, addressing the rapid pace of change in the market.
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