Competition watchdog the ACCC is closely following developments in generative AI, including considering possible competition and consumer harms.
The Australian Competition and Consumer Commission has been digging deep in to activities of the big digital platforms, the role of influencers and companies advertising themselves as green when their credentials for that are suspect.
Gina Cass-Gottlieb, the ACCC's chair, speaking at the virtual KWM Digital Future Summit 2023, noted that new technologies can drive innovation.
And the popularisation of generative AI may provide an opportunity to challenge the market position of dominant platforms.
"However, the quick integration of generative AI into the services of digital platforms also has the potential to raise many of the same barriers to entry and expansion that make platform markets tend towards concentration," she says.
"Existing large digital platforms likely have a head-start in developing and deploying high-quality generative AI services due to their access to data and computing power.
"We’re also already seeing firms that control valuable or unique data sets – such as Reddit – starting to actively restrict access to that data, which has the potential to impact the training of large language models.
"The significant and entrenched market power of today’s leading platforms demonstrate what can happen when governments and competition regulators do not act early enough to respond to major new technological developments and disruptions. The rise of generative AI may be an opportunity to avoid repeating this pattern.
"Generative AI may also be useful in the fight against scams, such as by helping to identify and disrupt them more quickly and effectively.
"However, this technology may also introduce or exacerbate risks to consumers. We could see greater volumes of more sophisticated scams that are better targeted across digital platforms, phone and SMS.
"Generative AI may also be used to increase the volume and sophistication of fake reviews online, frustrating consumer choice and distorting competition.
"Additionally, the increasing popularity and ‘hype’ surrounding large language models may incentivise spurious and misleading claims about the capabilities (or existence of) of AI technology in a wide range of products."
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.