The Competition Commission of India (CCI) has taken a significant step towards understanding the competition dynamics in artificial intelligence (AI) markets by appointing the Management Development Institute Society (MDIS) to conduct a comprehensive market study on AI and its impact on competition. This marks a strategic initiative by the CCI to delve into the rapidly evolving AI landscape, with potential implications for businesses and consumers alike.
The selection of MDIS comes after a formal Request for Proposal (RFP) was issued earlier in April 2024, soliciting interest from leading institutions to lead the study. After a thorough evaluation process, MDIS was chosen, and a formal agreement was signed between CCI and MDIS on September 9. The study reflects CCI’s ongoing commitment to ensuring fair competition in India’s rapidly evolving digital and technology markets.
Objectives of the AI Study
The primary goal of the study is to provide a deeper understanding of how AI systems and related markets operate within India, focusing on key stakeholders, market structures, and the competitive dynamics involved. The study will focus on understanding the different AI systems, including the actors involved, essential resources, value chains, and the parameters that define competition within AI ecosystems.
The CCI seeks to identify potential competition concerns in AI markets. With AI being integrated into various industries, there is a growing need to assess whether certain market structures or practices are hampering competition or creating monopolistic behaviour.
Another critical focus will be to analyse the applications of AI and understand both the opportunities and risks it presents, particularly from a competition perspective. The study will explore how AI’s growth may influence market behavior and competition.
Given AI’s dynamic and global nature, the study will examine the regulatory and legal frameworks governing AI in India, as well as major international jurisdictions. This will provide insights into how Indian regulations compare globally, offering guidance for potential updates or reforms.
The CCI will engage with relevant stakeholders, including industry players, policymakers, and consumer groups, to gain a comprehensive understanding of the competitive landscape shaped by AI.
The study aims to track AI trends and patterns, enabling the Commission to establish clear enforcement and advocacy priorities in relation to AI applications. This will help the CCI stay ahead of potential competition issues in AI-driven markets.
A Strategic Initiative
Artificial intelligence is reshaping industries across the globe, raising critical questions about competition, consumer protection, and regulatory frameworks. This study signals the CCI’s proactive approach to understanding and addressing the challenges posed by AI’s growing influence in various sectors. The findings are expected to provide a foundation for the Commission’s future policies and enforcement actions, ensuring AI innovation thrives in a competitive and fair marketplace.
By engaging MDIS, one of India’s leading research institutions, the CCI is reinforcing its dedication to safeguarding competition in an era of technological transformation. As AI continues to permeate industries such as healthcare, finance, e-commerce, and logistics, this market study will likely have far-reaching implications, shaping the future regulatory landscape.
The study is expected to take a holistic approach, combining economic, technological, and legal perspectives to provide actionable insights. It is anticipated that the findings will support both the Commission’s enforcement efforts and its advocacy initiatives as India continues to embrace AI-driven growth.
With artificial intelligence set to play an increasingly pivotal role in shaping the future of industries, CCI’s partnership with MDIS is a timely intervention aimed at understanding AI’s influence on competition. The results of this study will provide a crucial roadmap for policymakers, businesses, and regulators to navigate the opportunities and challenges posed by AI in India’s marketplace.
For businesses and consumers, this move by the CCI offers a reassurance that emerging technologies like AI will be monitored closely to prevent any adverse effects on competition, while fostering innovation and growth in the Indian economy.