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  • Writer's pictureMarie-Avril Roux Steinkühler

The French Competition Authority examines the impact of AIs on competition in a self-referral study

Generative artificial intelligence (generative AI) involves the creation of new content from vast data sets and powerful computing capabilities, often using techniques such as deep learning and neural networks. These AIs can generate various types of content, including text, images, music, and video.

Since the introduction of Chat GPT in November 2022, this technology has generated intense public and economic debate due to its implications for privacy, intellectual property rights and the labor market. It also offers numerous business opportunities, notably in content creation, graphic design, and customer service.

The generative AI market is booming and is expected to reach €42 billion by 2023, with projections indicating annual global sales potentially more than €200 billion by 2030.

The French Competition Authority has decided to examine this issue on its own initiative, with the aim of observing the strategies of digital players and analyzing the problems associated with access to data and a skilled workforce.

The development of generative AI requires major investments in computing power, data, and skilled manpower. Large digital companies, already in possession of key resources, may seek to strengthen their position by limiting access to data or attracting talent, thereby consolidating their power in the generative AI market.

Companies already established in the digital sector are adopting an active acquisition policy in the field of generative AI. Significant investments have been seen, such as those by Microsoft in OpenAI, and by Amazon and Google in Anthropic, a startup competing with OpenAI.

These minor acquisitions and shareholdings are attracting the attention of competition authorities, who are closely examining their potential impact on competition. The French Competition Authority has launched a public consultation, open until March 22, 2024, to gather comments from stakeholders.

The contributions received during this consultation will feed into the Authority's reflections, which will issue its recommendations in the coming months.

Marie-Avril Roux Steinkühler


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