Major AI companies like OpenAI face potential antitrust scrutiny from the Department of Justice: Tech: Tech Times

The US Department of Justice (DOJ) has placed major artificial intelligence (AI) companies, including OpenAI, under its crosshairs for potential antitrust violations.

NBC News reports that the warning was issued by Deputy Attorney General Jonathan Kanter, who heads the Justice Department’s antitrust division, during a conference at Stanford University on Thursday, May 30.

The move signals increased regulatory scrutiny over how AI companies operate and reward creators whose works are used to train AI models.

The Justice Department is looking at regulatory action if AI companies don’t pay artists

Jonathan Kanter, the Justice Department’s top antitrust watchdog, warned artificial intelligence companies of possible regulatory action if they do not compensate artists, animators and other creators fairly.

Speaking at a conference attended by artificial intelligence researchers, executives and government officials, Kanter emphasized the importance of ensuring creators are properly compensated for their contributions.

The warning was issued Thursday at Stanford University during a conference on the economic impact of generative artificial intelligence systems such as ChatGPT and the application of antitrust laws to these technologies.

Kanter’s statements resulted from concerns about the potential exploitation of creative works by AI companies. He questioned future incentives for creators if AI technologies can extract and exploit their work without proper compensation.

“What incentive will future writers, creators, journalists, thinkers and artists have if artificial intelligence can mine their ingenuity without adequate compensation?” – Kanter asked.

Kanter emphasized that the Department of Justice is currently actively analyzing the artificial intelligence ecosystem. He highlighted the department’s potential power under the antitrust rule of monopsony, where a powerful buyer can lower prices by reducing incentives to produce.

“In the absence of competition to ensure creators are adequately compensated for their creations, AI companies could exploit the power of monopsony at levels we have never seen before, with devastating consequences,” Kanter said.

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Copyright lawsuits against artificial intelligence companies

The warning comes amid growing tensions between artificial intelligence companies and creators. Recently, actress Scarlett Johansson accused OpenAI of using a voice eerily similar to hers in its new GPT-4o chatbot after she refused to share her voice.

The issue is part of a broader conflict over AI-generated voices and images in entertainment, which has been a point of contention in previous labor negotiations such as the SAG-AFTRA writers’ strikes in Hollywood.

Artificial intelligence companies, including OpenAI and investor Microsoft, have also faced numerous lawsuits from authors and media outlets such as The New York Times alleging copyright infringement. These legal challenges highlight ongoing disputes over the use of creative works to train artificial intelligence models.

Kanter, who expressed concerns about competition in the artificial intelligence industry, was joined by Vära Jourová, vice-president of the European Commission, who also spoke at the conference. She warned against high barriers to entry into AI, such as computational costs, which could favor large companies over start-ups.

Department of Justice analysis is not new to OpenAI. In July 2023, the Federal Trade Commission (FTC) began investigating OpenAI for potential violations of consumer protection laws, focusing on data processing, the risk of disinformation, and potential harm to consumers.

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