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CMA investigating effects of AI on competition and consumers

Report to be published in September.

AI confounded by maths
Image credit: Adobe Stock

The Competition and Markets Authority is launching an investigation into AI foundation models, following the emergence of AI within several industries.

AI is very much a topic of concern for the games industry right now. Recent releases, such as High On Life, have used AI during development and its use has raised eyebrows among players.

There was a mix of concerns and excitement regarding AI among developers at GDC in March, Chris Tapsell reported. Following the UK government's white paper on AI which was published in March, the CMA is now assessing potential effects of the technology on markets and consumers.

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The goals of the investigation are to examine how the markets for AI and its use could evolve, explore the potential opportunities and risks for competition and consumer protection, and produce guidance to support competition and protect consumers as AI develop.

The CMA will gather evidence before it publishes its report in September, and is accepting submissions from stakeholders and other relevant parties. Updates on the case can be found on the CMA's website.

Opinions on the CMA within the games industry are currently mixed. Last week, the CMA made its decision to block Microsoft's acquisition of Activision Blizzard, which Activision CEO Bobby Kotick had strong words about. Microsoft president Brad Smith described it as "probably the darkest day" of Microsoft's four decades in Britain.

Although Sony may be happy about the CMA's decision, that hasn't stopped Microsoft from pursuing more partnerships to bring Xbox games (and Activision Blizzard games should the acquisition go through) to more people.

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