The Competition and Markets Authority ('CMA') announced, on 4 May 2023, that it is launching an initial review of competition and consumer protection considerations in the development and use of artificial intelligence ('AI') foundation models. In particular, the CMA stated that the review focuses on understanding how foundation models, which include large language models and generative AI, are developing, as well as assessing the conditions and principles that will best guide the development of these models and their future use. More specifically, the CMA noted that the initial review will:

• examine how the competitive markets for foundation models and their use could evolve;
• explore what opportunities and risks these scenarios could bring for competition and consumer protection; and
• produce guiding principles to support competition and protect consumers as AI foundation models develop.

Notably, the CMA specified that it is seeking stakeholders' views and evidence and welcomes submissions until 2 June 2023, following which the CMA will publish a report which sets out its findings in September 2023.

You can read the press release here, the launch document here, and more information here.

UPDATE (18 September 2023)

CMA publishes report on AI foundation models

On 18 September 2023, the CMA published a report following its initial review of competition and consumer protection considerations in the development and use of AI foundation models. Notably, the report proposes principles that would best guide the development and deployment AI foundation models.

You can read the press release here, the full report here, and a summary of the report here.