We have teamed up with the LIDC (International League of Competition Law) to share a series of podcasts examining some of the increasingly pressing questions around cloud computing, AI and competition law.
Over seven episodes, recorded in November 2024, Ben Evans, Shruti Hiremath and guests will look beyond the current position to identify some of the pressures the changing landscape will bring to bear.
Episode 5: Dissecting AI Competition
Are competition concerns unfounded?
In episode 5, the panel recalls the competition concerns raised in episode 1 and explores reasons why some competition concerns may be unfounded. AI is set apart from other sectors and this counsels for a different regulatory mindset. The market is rapidly evolving with a large and diverse array of players, from startups to existing firms, firms changing business models to enter the space, academia, and open-source communities. All of these players are innovating in the AI space and contributing to each other’s activities, and it is increasingly apparent that competition exists both within each component of the AI stack and across those components. In addition, the growth in open source is a particularly important factor that stimulates greater, more rapid innovation and sets AI apart from many other sectors.
Moreover, investments in AI are pan-sectoral and originate from a broad range of sources, from financial institutions to governments and private firms, often through strategic partnerships. Of course, there may be valid issues, and it is imperative for competition authorities to investigate concerns, but the broader picture is one of vibrant competition. The panel also reflects on experience in AdTech, which turned from offering publishers tremendous benefits to locking them into a potentially disadvantageous model. Despite large incumbents having considerable data, skills, inputs and the model, the open-source differentiator in AI suggests that it may be less likely to ‘tip’ towards a winner-takes-all scenario. Skills and focus may also be key factors, and the panel considers how firms have different incentives to harness data and human capital for discrete purposes.
Building on this discussion, the skills and focus in Brazil are explored. In this important emerging market, substantial focus has been directed at helping the government to build its digital public infrastructure. Although Brazil provides positive examples of innovation, in particular in the area of payment systems, the discussion moves to consider concerns relating to the country’s new AI Bill. It is suggested that the dynamic nature of AI counsels for a general, high-level framework of regulation. However, in its current form the Brazilian Bill has become a ‘Frankenstein’ incorporating myriad interests that extend to the patentability of AI generated inventions.
Panel
Ben Evans (Chair) is a Postgraduate Researcher at the School of Law and Centre for Competition Policy, University of East Anglia. He is a member of the LIDC Scientific Committee.
Shruti Hiremath is Counsel in the Clifford Chance Antitrust Team in London.
Lauren Murphy is Founder and CEO of Friday Initiatives.
Felipe Oquendo is an Attorney-at-Law at Licks Attorneys in Rio de Janeiro. He is a Vice-President of the LIDC.
If you cannot access the YouTube video link below, please follow the link at the end instead.
The series was recorded on 7 November 2024, and the views and opinions expressed therein reflect the legal context and state of affairs up to that date.
You can also watch or listen via the LIDC website, YouTube and Spotify.
