The rapid expansion, development and adoption of artificial intelligence has prompted national regulators to investigate competition concerns in the sector.
As reported last week, the tenth and final report of the ACCC’s Digital Platform Services Inquiry has extended its focus to include generative AI.
The ACCC proposes to examine potential competition issues relating to the emerging technology. These issues may include considering the high barriers to entry in the market and the potential for large digital platforms to strengthen and expand their market power through the integration of Large Language Models (LLMs).
The move was prompted by the extensive adoption and rapid pace of AI development, an ACCC spokesperson confirmed to AdNews.
The ACCC is a member of the Digital Platforms Regulators Forum (DP-REG), along with ACMA (Australian Communications and Media Authority), the eSafety Commissioner and OAIC (Office of the Australian Information Commissioner).
“DP-REG members share information about, and collaborate on, cross-cutting issues and activities involving the regulation of digital platforms,” the spokesperson said.
“In October 2023 DP-REG published a working paper considering the benefits, risks and harms of large language models (LLMs, which are a type of language model that form the basis of certain generative AI systems) and how the technology intersects with the regulatory remit of each member.”
The paper outlined a number of competition risks including the large upfront financial investment, vast datasets, long development lead times and infrastructure required to develop and operate LLMs. The Organisation for Economic Co-operation and Development also suggested that algorithms could facilitate collusive or cartel-like behaviours in broader markets.
These points have been outlined in the ACCC’s latest Issues Paper, with written submissions from interested parties due to be lodged by August 23.
The current ninth interim report of the ACCC’s Digital Platform Services Inquiry, due to Government in September 2024, is also considering the potential impact of generative AI as it relates to general search services in Australia. That report, which focusses on competition in search and trends in search quality, is due to the Treasurer by September 30, 2024.
The final report is due to be submitted to the Government by March 31, 2025.
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