Competition Commission of India to Conduct Market Study on Artificial Intelligence and Competition

The Competition Commission of India (CCI) is gearing up to delve into the world of Artificial Intelligence (AI) with a market study on ‘Artificial Intelligence and Competition’. This study aims to gather insights from stakeholders and gain a comprehensive understanding of how AI is shaping markets in India.

In a recent development, the CCI has issued a request for proposal to engage an agency to conduct this market study. The Commission believes that this study will play a crucial role in shaping their strategies to promote innovation and fair competition in the evolving landscape of AI.

The study will focus on exploring the competition dynamics in the development ecosystems of AI systems, as well as the implications of AI applications on competition, efficiency, and innovation in key user industries. It will also delve into the AI ecosystem, its applications in various industries, market size, impact on competition, and the regulatory frameworks governing AI in India and other major jurisdictions.

Moreover, the study will aim to foster a competitive environment that encourages the development of AI by incumbents and new innovators. It will also look into strategies and measures to create awareness among stakeholders about the use of AI, its impact on competition, and the necessary compliance standards.

The agency conducting the study will be expected to gather existing research and data, as well as engage with stakeholders. The deadline for bid submissions is June 3, with the opening of financial bids scheduled for June 26. The selected agency will be appointed post approval.

This market study on AI is part of the CCI’s efforts to address anti-competitive issues in the emerging digital economy. The establishment of a digital markets and data unit, recent amendments to the Competition Act, and the proposed digital competition law all reflect the regulator’s commitment to keeping a close watch on anti-competitive behavior, particularly by Big Tech firms.

Overall, this initiative by the CCI underscores the growing importance of AI in the Indian market and the need for regulatory frameworks to ensure fair competition and innovation in the AI space.