In a report published today, the Competition and Markets Authority (CMA) said it is concerned about the concentration of market power among a handful of incumbent technology giants within the FM value chain.
FMs are advanced AI systems, such as OpenAI’s ChatGPT, Gemini and Dall-e, that can understand language, recognise and create images and solve problems. Many have been created by big tech companies, including Google, Amazon and Meta.
Such dominance, the authority fears, could lead to adverse effects on competition, consumer choice and innovation.
It could “profoundly shape the development of FM-related markets to the detriment of fair, open and effective competition and ultimately harm businesses and consumers, for example by reducing choice and quality, and by raising prices,” the CMA said.
It also added: “We recognise that today’s largest technology firms likely have an important role to play as FM-related markets evolve. These firms can contribute a huge wealth of resources and expertise and, in some cases, have themselves been drivers of innovation in this space.”
The CMA is set to release a more detailed technical update report, including AI market developments and feedback received.
The update follows a separate report in September 2023, where the CMA reported its initial findings and proposed guiding principles to ensure competition and consumer protection within the FM sector.
So far, the British government has announced plans to spend over £100m building AI research hubs and preparing regulators to control the burgeoning technology.
It has said it wants to introduce “targeted, binding requirements” for FMs, although some have criticised the pro-innovation approach for its perceived laissez-faire approach.
It comes as the UK and the Republic of Korea today announced dates for the second AI summit, which is planned to take place in Seoul on 21st and 22nd May.