US, UK, EU make joint statement on supporting AI competition

Four regulators from the EU, UK and US have published a statement of their joint intention to investigate whether the AI ​​industry allows for sufficient competition. The four groups are the European Commission, UK Competition and Markets Authority, US Department of Justice and US Federal Trade Commission.

The statement does not suggest the introduction of any comprehensive regulations or the establishment of a new regulatory body.

“Our decisions will always remain sovereign and independent,” the statement reads. But the organizations said some cooperation is important because the risks stemming from the AI ​​industry “do not respect international borders.”

What does the joint statement say?

The statement aims to prevent competitive risks, such as entrenching existing AI companies in ecosystems, increasing barriers to entry, or lack of choice for buyers. The statement also makes room for more existential risks: “AI may be developed or used in ways that harm consumers, businesses, or other market participants.”

Other challenges in the AI ​​industry include limited access to chips and tight collaboration between key players. On the latter, the CMA has until September to decide whether to explore transferring key Inflection AI talent to Microsoft.

The joint statement, which is not tied to any specific investigation or AI company, suggests these challenges can be addressed by following some established principles:

• “Fair dealing” (as opposed to “exclusionary tactics”).
• Interoperability.
• Choice.

“AI is a borderless technology that has the potential to drive innovation and growth, delivering transformative benefits to people, businesses and economies around the world,” CMA Director General Sarah Cardell said in a press release. “That’s why we have come together with our partners in the EU and the US to set out our commitment to help ensure that fair, open and effective competition in AI drives growth and positive change in our societies.”

SEE: Search engines are the hottest new arena where artificial intelligence companies are competing.

What does the joint statement mean for business?

The joint statement is part of ongoing maneuvering between governments and the emerging AI industry. Meta has held off on releasing multimodal AI products in the EU due to what Facebook’s parent company describes as a lack of clarity from the EU regarding GDPR privacy rules, Axios reported July 17.

At the same time, the European Commission is investigating the world’s largest technology companies, suspecting them of using “market access control” software under the Digital Markets Act.

The European Union’s Artificial Intelligence Act is set to come into force on August 1. It will provide tools for startups and require companies to assign risk levels to AI systems and disclose AI-generated content.

The companies most likely to be affected are those in the EU that use AI products or large AI manufacturers. But the broader question is whether both groups can find a balance between protecting user privacy – especially in the case of photorealistic AI images that can spread disinformation – and allowing new companies to shake up the industry.