July 2 (UPI) — The sudden rise of generative artificial intelligence has raised concerns for the Federal Trade Commission about how companies may adopt unfair methods of competition.
The FTC shared several concerns about how companies that offer generative AI services may use those products to weaken the value of their competitors. Unfair methods discussed by the FTC include bundling, tying and exclusive dealings.
“Incumbents that control key inputs or adjacent markets, including the cloud computing market, may be able to use unfair methods of competition to entrench their current power or use that power to gain control over a new generative AI market,” reads a blog by the FTC’s Bureau of Competition and Office of Technology.
The blog speculates that a small number of companies could corner the market because generative AI technology improves over time with larger user bases.
Generative AI has caught the attention of lawmakers and President Joe Biden in recent weeks, leading to multiple government arms inquiring about its potential harms. The government continues to grapple with potential regulations to curb abuse and maintain fair competition in this burgeoning market.
Biden met AI with developers in Silicon Valley two weeks ago to learn more about its risks and uses. Biden and Vice President Kamala Harris have also held talks with the heads of Google, Microsoft and other tech companies.
“AI is going to change the way we teach, learn, and help solve challenges like disease and climate change — and giving the time to focus on the things that matter most to you personally,” Biden said during a speech in San Francisco on June 20.
“But in seizing this moment, we need to manage the risks to our society, to our economy, and our national security. My administration is committed — is committed to safeguarding America’s rights and safety, from protecting privacy, to addressing bias and disinformation, to making sure AI systems are safe before they are released.”