The Competition Commission of India (CCI) has partnered with the Management Development Institute Society (MDIS) to conduct a comprehensive market study on artificial intelligence (AI) and its competitive dynamics in India.

This study will focus on six primary objectives, including examining competition issues in AI markets and understanding existing regulatory frameworks in India and other key jurisdictions.

This initiative aligns with the CCI's increased focus on digital markets and its recent investigations into major companies like Google, Flipkart, and Amazon India.

The CCI emphasized AI's substantial procompetitive potential while also raising concerns about algorithmic bias and new forms of collusion from self-learning AI systems.

CCI intends to identify potential competition concerns in AI markets, particularly in terms of monopolistic behavior and market practices that may hinder competition.

The study will investigate how AI-driven personalized recommendations and services influence consumer choices and market dynamics.

The findings are expected to inform CCI's enforcement and advocacy priorities regarding AI applications, ensuring proactive measures against potential competition issues.

The MDIS, based in Gurugram, will explore key AI ecosystems, including stakeholders, resources, value chains, and market structures.

Stakeholder engagement, including industry players, policymakers, and consumer groups, will be crucial for understanding AI's competitive landscape.

This initiative follows a formal Request for Proposal (RFP) issued by the CCI in April 2024, with the agreement signed on September 9, 2024.

This AI study is part of a broader strategy by the CCI to regulate emerging technologies, including new rules for digital firms regarding mergers and acquisitions over INR 2,000 Cr.

Globally, regulators in the United States and the European Union are also examining the competitive impacts of AI and developing new regulatory frameworks.