AI & Cartelisation: CCI Chief Warns of Risks, Focuses on Transparency

New Delhi, Dec 29 (PTI) Artificial Intelligence (AI) has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms, Competition Commission chief Ravneet Kaur has said, asserting that the watchdog is focused on developing ecosystems that ensure algorithmic transparency and accountability while promoting innovation.

The Competition Commission of India (CCI), which works to curb unfair business practices in the market place, has commenced the study on Artificial Intelligence (AI) and competition that is expected to be completed by mid-2025.

The study will look at various elements, including AI in the area of logistics and algorithms in general.

In an interview to PTI, Kaur said mere use of algorithms cannot be anti-competitive but in case the algorithms are manipulated, then that is a competition issue.

"AI has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms... our focus is on developing ecosystems that ensure algorithmic transparency and accountability while promoting innovation," she said.

While noting that the market study on AI will examine various risks, she also said the regulator aims to address the concerns through advocacy outreach and an appropriate enforcement mechanism.

The watchdog, which has passed orders against technology companies for indulging in alleged anti-competitive practices, is also working on boosting its capabilities to deal with the challenges posed by new age markets.

Recently, the regulator's in-house Digital Markets & Data Unit (DMDU) was upgraded into a full-fledged Digital Markets Division (DMD), which is headed by an advisor.

"We are building technical expertise and collaborating with domain experts to understand complexities of new-age markets," Kaur, who took over as the chairperson in April 2023, said.

The regulator also plans to recruit more domain experts to help assess competition amid rapid changes in the technology landscape.

"Recruitment of domain experts in areas like AI, data analytics and digital markets is a priority. This will ensure that CCI remains future ready and well equipped to address challenges posed by rapidly evolving technologies," Kaur said.

About the Digital Markets Division (DMD), the chairperson said the regulator is in the process of recruiting data analysts and further expansion of the team will be considered once the proposed ex-ante regulation takes a concrete shape.

"Big tech and e-commerce present unique challenges due to their scale, complex ecosystems and rapid innovation. However, CCI is addressing these with a robust regulatory framework, leveraging global best practices, and engaging with stakeholders.

"The setting up of the DMD and ongoing market studies on 'AI and Competition' equip us to better assess and resolve these challenges," she said.

In 2023-24, CCI received 50 anti-trust information, passed prima-facie orders with respect to alleged anti-competitive conduct in 33 matters, and "approved/ disposed of" 101 combinations, as per its annual report.