The Competition and Markets Authority (CMA) has identified key risks to fair competition in AI Foundation Models (FMs), growing concerns as AI rapidly develops in the financial industry.
In a speech in Washington DC by CMA CEO Sarah Cardell, outlined how the rapid growth of AI usage is leading towards increasing concern. The concerns surround the control a small number of large technology firms have over the market, how it is possible for those companies to manipulate the market for their own gain, and that partnerships between key players could alter market power through the value chain.
The CMA published an update to their paper, initially published last year, to guide the market and the economy for the future. The new paper highlights how there is an “interconnected web” of partnerships and investments involving the same companies that develop the majority of AI FMs: Google, Apple, Microsoft, Meta, Amazon, and Nvidia. The CMA warns against the power these major companies hold, and propose regulation to monitor their dominance in the market.
The paper offers guidance on how these concerns can be addressed and what other considerations regulators should consider when implementing legislation on AI FMs.
Cardell stated: “When we started this work, we were curious. Now, with a deeper understanding and having watched developments very closely, we have real concerns. The essential challenge we face is how to harness this immensely exciting technology for the benefit of all, while safeguarding against potential exploitation of market power and unintended consequences.
“We’re committed to applying the principles we have developed, and to using all legal powers at our disposal – now and in the future – to ensure that this transformational and structurally critical technology delivers on its promise.”