The UK’s competition watchdog has set out a list of principles designed to avoid any company obtaining a dominant position in the AI sector, and ensure that AI models are accountable and competitive.

In its latest report, the CMA has focused specifically on foundation models – large-scale AI models such as OpenAI’s GPT-4 and Meta’s Llama 2 that can be adapted to downstream customer applications, meaning that they are intended to be built on by developers of customer-facing apps and services.

The regulator said that AI would bring many benefits, but warned against the risk of a proliferation of false information, fraud and fake reviews. In addition, the monopolisation of the industry by one or a few firms could lead to higher prices and worse-quality products. 

“It is essential that these outcomes do not arise,” said the CMA. To keep this from happening, the watchdog proposed guiding principles that would “ensure consumer protection and healthy competition...