Competition in and through artificial intelligence

This chapter maps the impact of artificial intelligence (AI) technologies on competition. It argues that the technical capabilities and complexities associated with AI systems are directly relevant for understanding markets in a digital age, both in the emerging markets for AI technologies and in the myriad downstream markets in which AI is used to supply products, services, or even to carry out regulatory tasks. To make this point, it first shows how the dependence of AI systems on resources such as high-level expertise, big data, and vast computational resources promotes the formation of technological ecosystems centred around platforms, and structures competition within, between, and across said ecosystems. Then, it maps how market actors and regulators incorporate AI systems into their practices, with an emphasis on how AI can be used to sustain and detect anti-competitive practices. Finally, it discusses the effects of AI regulation on competition.