Generative AI: Questions for competition and consumer protection authorities

Key Takeaways:

– The development and use of generative AI (GenAI) and foundation models have grown exponentially in recent years.
– The leading models and tools are offered by a small number of big players, but smaller players also offer innovative products based on these models.
– Regulators should foster an environment where access to models is provided on fair, reasonable, and non-discriminatory terms.
– Competition between model operators should be encouraged to support the development of high-quality models and different monetization strategies.
– Operators should prioritize GenAI safety over speed to ensure consumer safety and avoid producing inaccurate or biased outputs.
– Transparency and education about the limitations of foundation models are crucial, as many consumers do not understand these limitations.
– Fine-tuning of foundation models for specific applications should not create a barrier to switching between operators.
– Different regulatory approaches exist, with the EU leading in regulating major digital players and AI-related protections.
– The UK aims to create a world-leading AI ecosystem without AI-specific legislation, relying on individual regulators and enforcement powers.
– The US is behind in federal-level regulation of AI but has initiated voluntary commitments and executive orders.
– The AI Safety Summit aims to discuss how to manage risks and promote international collaboration and best practices in AI.
– Three critical questions for fostering competition, innovation, and informed consumer choice in GenAI include access to models, GenAI safety, and fine-tuning without barriers to switching.

TechRadar:

Generative AI: 3 critical questions for competition and consumer protection authorities It is barely a year since the launch of ChatGPT by OpenAI brought generative AI and foundation models to the forefront of public consciousness. The development and use of GenAI have seemed exponential, and governments are racing to regulate the potential risks it poses without limiting its transformative potential or discouraging AI-related investments in their jurisdictions.

In this context, participants at the UK’s AI Safety Summit on 1 and 2 November 2023 have much to discuss. The Summit will bring together governments, academics, civil society and company representatives to consider how to manage misuse and loss of control risks from recent advances in AI, with a view to promoting international collaboration and best practice.

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AI Eclipse TLDR:

Generative AI and foundation models have gained significant attention and development in recent years, leading to a need for regulation to manage potential risks. The UK’s AI Safety Summit aims to bring together various stakeholders to discuss how to address misuse and loss of control risks in AI while promoting collaboration and best practices. However, the summit does not address competition and consumer protection issues, which are crucial for fostering competition, innovation, and informed consumer choice.

One critical question for regulators is the dominance of a few major players in offering leading models and tools. While smaller players also bring innovative products to the market, they often rely on models developed by the bigger players. Regulators need to ensure fair and non-discriminatory access to models, as arrangements between big players can lead to anti-competitive behaviors that limit competition and consumer choice.

The second question revolves around the balance between GenAI’s speed and safety. With significant investments and public attention, operators may prioritize functionality and speed over consumer safety. It is crucial to educate consumers about the limitations of foundation models to avoid inaccurate, biased, offensive, or infringing outputs. Industry bodies can play a role in developing and disseminating best practices to ensure accountability throughout the value chain.

The third question pertains to the fine-tuning of foundation models for specific customer-facing applications. While fine-tuning can enhance performance, it may create a barrier to switching operators. Customers who rely on fine-tuned models may find it challenging to achieve equivalent performance and functionality with another operator, discouraging them from switching and stifling market growth. Regulators need to address this issue to encourage competition and the emergence of new operators.

Different regulatory approaches have emerged globally. The EU has taken the lead in regulating major digital players and AI-related protections, while the UK aims to create a world-leading AI ecosystem without specific legislation. The US is still behind in federal AI regulation but has initiated voluntary commitments and executive orders to address AI safety and security.

Overall, the development and use of generative AI and foundation models necessitate thoughtful regulation to manage risks while fostering competition, innovation, and consumer choice. The UK’s AI Safety Summit provides an opportunity for stakeholders to discuss these critical questions and promote international collaboration and best practices.