ARTIFICIAL INTELLIGENCE

Competition watchdog in the UK warns of negative AI consequences

By our News Team | 2023

An increase in fake reviews and false information, as well as flouting of consumer protection laws, are all possible results of the AI boom.

Britain’s competition watchdog has warned that the AI boom may not bring as many positives as people hope. Rather, there will be increased risks around fake reviews, fraud and a rising tide of misinformation.

The Competition and Markets Authority is also concerned about a small number of AI companies becoming entrenched and dominant players in the sector, which could lead to less consumer privacy and the flouting of consumer protection laws.

Photo by Possessed Photography on Unsplash

“We can’t take a positive future for granted,” the Chief Executive of the CMA, Sarah Cardell, said this week, as the CMA published its report on AI Foundation Models.

“There remains a real risk that the use of AI develops in a way that undermines consumer trust or is dominated by a few players who exert market power that prevents the full benefits being felt across the economy,” added Cardell.

Creative industries also at high risk

In a statement discussing the report, the Competition and Markets Authority said intellectual property and copyright were also important issues. Authors, news publishers and the creative industries had all raised concerns over uncredited use of their material in building AI models.

According to the organisation, it is essential that the AI market does not fall into the hands of a small number of companies, with a potential short-term consequence that consumers are exposed to significant levels of false information and AI-enabled fraud.

In the long term, it could enable firms that develop foundation models to gain or entrench positions of market power, and also result in companies charging higher prices for using the technology.

According to news agency Reuters, the Competition and Markets Authority, is, like other authorities around the world, trying to control some of the potential negative consequences of AI without stifling innovation.

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