In a move to regulate and guide the burgeoning field of generative artificial intelligence (AI), the UK’s regulatory watchdog, the Competition and Markets Authority (CMA), has unveiled a comprehensive framework comprising seven principles aimed at ensuring the responsible utilization of generative AI technologies. These principles, outlined in a report released on September 18, 2023, are strategically designed to safeguard consumer interests while fostering an environment of open innovation and robust competition.
As the primary anti-trust regulator in the UK, the CMA has made consumer protection a top priority in the context of emerging AI technologies. The principles address not only generative AI but also the responsible development and application of foundation models (FMs) powered by AI, acknowledging their versatile and potentially transformative capabilities.
Key principles highlighted in the framework include a focus on accountability, transparency, and the promotion of competition. The CMA’s proactive stance is seen as a response to the rapid evolution and integration of AI into various industries, signaling a commitment to ensuring that these advancements align with ethical and competitive standards.
The introduction of these principles represents a significant step in the UK’s efforts to establish a clear and responsible regulatory framework for AI technologies, balancing the potential benefits of innovation with the imperative of safeguarding consumers and maintaining a level playing field in the AI landscape. Stakeholders across industries will closely monitor the implementation of these principles and their impact on the development and deployment of generative AI systems and foundation models in the coming years.
The Seven Principles
Accountability
FM developers and deployers are accountable for the outputs provided to consumers.
The developers and deployers of generative AI systems are held responsible for the outputs of their systems. This is important because generative AI systems can be used to create content that is harmful or misleading.
Access
Ensuring ongoing access to key inputs without unnecessary restrictions.
Access is important because it ensures that businesses and individuals have access to the key inputs they need to develop and use generative AI systems. This promotes innovation and competition in the generative AI market.
Diversity
Promoting sustained diversity in business models, including both open and closed approaches.
Here, there is a variety of generative AI systems available to businesses and individuals. This gives businesses and individuals more choice and flexibility in how they use generative AI.
Choice
Sufficient choice for businesses so they can decide how to use FMs.
It ensures that businesses and individuals have the freedom to choose how they use generative AI. This promotes innovation and competition in the generative AI market.
Flexibility
Allowing flexibility to switch and/or use multiple FMs as needed.
It ensures that businesses and individuals can easily switch between generative AI systems if they need to. This gives businesses and individuals more choice and control in how they use generative AI.
Fair dealing
Prohibiting anti-competitive conduct, including self-preferencing, tying, or bundling.
It prevents anti-competitive conduct in the generative AI market. This is important because it ensures that businesses and individuals have access to generative AI systems at a fair price.
Transparency
Providing consumers and businesses with information about the risks and limitations of FM-generated content.
It allows businesses and individuals to understand the risks and limitations of generative AI systems. This allows businesses and individuals to make informed decisions about how to use generative AI.
Overall, these seven principles provide a good framework for ensuring the responsible development and use of generative AI.
Shaping the AI Market for the Benefit of All
The CMA’s principles provide a framework for ensuring that generative AI is used in a responsible way that benefits everyone. The authority is seeking feedback on these principles from stakeholders and plans to publish a final version in early 2024.
“The CMA’s role is to help shape these markets in ways that foster strong competition and effective consumer protection, delivering the best outcomes for people and businesses across the UK. In rapidly developing markets like these, it’s critical we put ourselves at the forefront of that thinking, rather than waiting for problems to emerge and only then stepping in with corrective measures,” said Sarah Cardell, CEO of the CMA.
The CMA emphasized its commitment to foundation models (FM), which are substantial AI models designed for customization in downstream customer applications through fine-tuning. These models hold a crucial position in the AI supply chain, as they are meant to serve as building blocks for others in the development of customer-facing apps and services.
“In this market for foundation models, there’s lots at stake for both competition and consumers. If the market works well, the best products win. And so do consumers and so do people. But if it doesn’t, people could really lose out and compelling businesses could struggle to compete. So with this review… we wanted to be on the front foot as much as possible — trying to understand what’s going on as it happens, rather than having to come in later and figure it out after the fact,” said Will Hayter, Senior Director for the CMA’s Digital Markets Unit (DMU), according to TechCrunch.
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