The Competition and Markets Authority (CMA) has identified significant risks to fair competition in AI Foundation Models (FMs) amid the rapid evolution of AI in the financial sector.
In a recent speech in Washington DC, CMA CEO Sarah Cardell emphasized growing concerns tied to the increasing use of AI. These concerns primarily focus on the considerable market control exerted by a handful of large technology firms, the potential for these companies to manipulate the market for their own advantage, and the ways in which partnerships among major players can shift market power along the value chain.
The CMA has published an update to its previous paper, intended to shape the future landscape of the market and economy. This new paper highlights an “interconnected web” of partnerships and investments among the leading AI FM developers: Google, Apple, Microsoft, Meta, Amazon, and Nvidia. The CMA warns about the dominance these tech giants hold and recommends regulatory measures to oversee their market influence.
The updated document outlines how these issues can be tackled and presents key considerations for regulators developing legislation around AI FMs.
Cardell expressed: “When we started this work, we were curious. Now, with a deeper understanding and close observation of developments, 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.”
She added, “We’re committed to applying the principles we’ve developed and utilizing all legal powers at our disposal—both now and in the future—to ensure that this transformational and structurally critical technology fulfills its promise.”