AI: The Double-Edged Sword in Modern Markets

Artificial intelligence is transforming market operations while posing risks of algorithmic discrimination and potential collusion. CCI Chairperson Ravneet Kaur stressed the need for updated regulations, highlighting AI's role in modern pricing strategies and competition law challenges at a national conference.

Artificial intelligence (AI) is both revolutionizing and complicating modern markets, according to CCI Chairperson Ravneet Kaur. Speaking at the 10th National Conference on Economics of Competition Law, Kaur highlighted AI's significant influence on pricing and decision-making across various industries.

Despite its benefits, AI introduces risks such as algorithmic discrimination and novel forms of collusion, including 'cartels without human communication' and price coordination without explicit agreements. The Competition Commission of India (CCI) is currently examining AI's impact on competition law.

The CCI, since enacting the Competition Act of 2002, has managed over 1,300 antitrust cases, with investigations ongoing. In 2024, the regulatory body processed 128 combination notices, approving most but implementing competition safeguards in select cases.

(With inputs from agencies.)