The UK competition watchdog, Competition and Markets Authority has proposed seven principles for governing consumer protection in the burgeoning artificial markets.
They are as follows:
- Accountability – FM developers and deployers are accountable for outputs provided to consumers.
- Access – ongoing ready access to key inputs, without unnecessary restrictions.
- Diversity – sustained diversity of business models, including both open and closed.
- Choice – sufficient choice for businesses so they can decide how to use FMs.
- Flexibility – having the flexibility to switch and/or use multiple FMs according to need.
- Fair dealing – no anti-competitive conduct including anti-competitive self-preferencing, tying or bundling.
- Transparency – consumers and businesses are given information about the risks and limitations of FM-generated content so they can make informed choices.
The proposed principles, which follow the CMA’s initial review of foundation models, “aim to ensure consumer protection and healthy competition are at the heart of responsible development and use of FMs”.
Foundation models (FMs) are defined as “artificial intelligence (AI) systems with broad capabilities that can be adapted to a range of different, more specific purposes”.
Though the CMA believes FMs like ChapGPT and other generative AI platforms have the potential to spur innovation and economic growth, the regulator also highlighted the “significant” impact they can have on people and businesses.
Lower prices and fewer barriers to access could allow more people and businesses to benefit from, rather than fall behind, the AI boom.
“The speed at which AI is becoming part of everyday life for people and businesses is dramatic. There is real potential for this technology to turbocharge productivity and make millions of everyday tasks easier – but we can’t take a positive future for granted,” said Sarah Cardell, chief executive of the CMA.
Cardell warned of the risk AI poses to consumer trust. “The CMA’s role is to help shape these markets in ways that foster strong competition and effective consumer protection, delivering the best outcomes for people and businesses across the UK.”
The CMA consulted over 70 stakeholders in the AI sector before publishing today’s AI Foundation Models report.