The UK’s Competition and Markets Authority (CMA) has proposed seven principles to ensure consumer protection and competition in the development and use of generative AI technology. This move comes as part of its initial review of generative AI, which aims to regulate market contestability and mitigate potential risks associated with AI technology.
Key Takeaway:
The UK’s Competition and Markets Authority has proposed seven principles for responsible development and use of generative AI. These principles aim to ensure consumer protection and healthy competition in the AI market. The CMA is actively seeking stakeholder engagement and plans to update its thinking in early 2024.
Accountability and Access
The first principle proposed by the CMA is accountability, which states that developers and deployers of foundation models (FMs) should be responsible for the outputs provided to consumers. The second principle is ongoing access to key inputs without unnecessary restrictions to ensure the smooth development and use of FMs.
Diversity and Choice
The third principle focuses on the need for sustained diversity of business models, including both open and closed models. The next principle is sufficient choice for businesses to decide how to use FMs, giving them flexibility and the ability to switch and use multiple FMs according to their needs.
Fair Dealing and Transparency
The fifth principle is fair dealing, which emphasizes the importance of avoiding anti-competitive conduct, such as self-preferencing, tying, or bundling. Lastly, the sixth principle highlights the need for transparency, ensuring that consumers and businesses are provided with information about the risks and limitations of FM-generated content.
The CMA is drawing on its experience in regulating market contestability and early feedback from AI stakeholders to develop these principles. It aims to promote these principles as best practice for responsible development and use of generative AI, with the goal of avoiding competition complaints and protecting consumers.
