AI Adoption Could Create New Competition Risks In Digital Markets: CCI Chief
India's Competition Commission (CCI) chairperson Ravneet Kaur has warned that the rapid adoption of AI could amplify anti-competitive practices in digital markets.
The Competition Commission of India (CCI) has raised concerns that the rapid integration of artificial intelligence (AI) into digital markets could exacerbate anti-competitive practices. Chairperson Ravneet Kaur highlighted risks including self-preferencing, discriminatory pricing, tying, and market manipulation.
Kaur stated that AI is accelerating the pace of change in digital markets, creating new challenges for regulators. "What was going at a very fast pace in digital markets has turned like jet speed now because of AI," she said, emphasizing the amplified competitive risks.
A significant area of concern for the CCI is agentic AI, where AI systems can independently make decisions and execute actions with minimal human oversight. The CCI's market study on AI and competition found that AI adoption is reshaping competitive dynamics and could lead to AI-driven anti-competitive practices.
The regulator has urged companies to conduct self-audits of their AI systems for competition compliance and adopt greater transparency. The CCI also plans to hold workshops to help businesses understand competition law as it applies to AI and the necessary safeguards to mitigate compliance risks.
Despite the emerging risks, Kaur reportedly confirmed that the CCI would not rush to regulate every new technology, focusing instead on adapting existing frameworks to address AI's impact on competition.