The UK’s Competition and Markets Authority is to probe the AI industry it announced today.
In a statement the CMA said: “This initial review will help create an early understanding of the market for foundation models and how their use could evolve; what opportunities and risks these could bring; and what competition and consumer protection principles will best guide the development of these markets going forward.”
Sarah Cardell, chief executive of the CMA told the Financial Times that the regulator would assess “the real opportunities there” but also “what kind of guardrails, what principles, we should be developing in terms of ensuring that competition is working effectively [and] consumers are being protected”.
The review comes as regulators around the world are increasing scrutiny of the development of generative AI — technology that can create images or text that are barely distinguishable from human output.
There are fears the technology could lead to job losses across the globe. Earlier, this week IBM said it was holding off new hires as it looked to see if the roles could be replaced by AI technology.
Last week, the CMA courted controversy after blocking Microsfot's planned acquisition of Call of Duty video game maker, Activision Blizzard.