AI's Impact on Markets and Business Operations

Artificial Intelligence (AI) is revolutionizing markets and business operations, but it also introduces significant risks, including the potential for enabling collusion and discrimination, according to Ravneet Kaur, Chairperson of the Competition Commission of India (CCI).

In New Delhi, on March 16, Kaur highlighted AI's dual nature as both a driving force in modern markets and a potential enabler of new forms of collusion. She emphasized the necessity for a forward-looking approach and trust-based regulations to mitigate these risks.

New Challenges Posed by AI

Kaur pointed out that AI could facilitate new forms of collusion, such as "cartels without human communication, price coordination without explicit agreements, and algorithmic discrimination under the guise of dynamic pricing". These challenges underscore the need for vigilant regulatory frameworks to ensure fair competition and prevent discrimination in the digital age.