Addressing Artificial Intelligence: The UK Competition and Markets Authority Perspective

This report outlines how the UK Competition and Markets Authority (CMA) is addressing Artificial Intelligence (AI) in exercising its competition functions. As a cross-sectoral regulator, the CMA has had to address the growing impact of AI as it relates to its remit. It has done so in three main ways. First, wearing its research and evidence-building hat, it has sought to understand the competition implications of AI – in particular, foundation models (FMs) – and associated areas – such as algorithms, choice architecture, and cloud services. Second, as a guide to best competitive practice, it has developed six principles to guide the FM sector. Third, as a regulator, it has exercised its merger review powers in relation to partnerships and other arrangements involving incumbent digital players and AI developers. In the very near future, it will be able to exercise forward-looking powers relating to undertakings designated as having Strategic Market Status under the Digital Markets, Competition and Consumers Act 2024 (DMCC Act).

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