The Competition Commission of India has invited requests for proposals from entities to carry out a detailed market study on artificial intelligence and its impact on competition.

The study will cover various aspects, including the ways that AI-driven personalised recommendations, services and pricing influence consumer choice.

The last date for submitting bids is June 3. The deadline for financial bids is June 28.

The study will examine if AI helps facilitate anti-competitive and collusion strategies or leads to the adoption of novel strategies that can lead to anti-competitive outcomes.

The fear is that AI may abet collusion through self-learning algorithms or inject an element of bias in AI algorithms that foster anti-competitive behaviour.

The shortlisted agency will be entrusted with dissecting the Indian AI market, analysing its size, growth trajectory, and concentration levels at various development stages.

The study will also pinpoint the key differentiators for tech companies in this space, focusing on factors such as data access and established network effects.

The CCI is particularly focused on examining the rise of AI-powered collusion and the possibility of algorithmic bias distorting competition. The study will also analyse mergers and acquisitions involving companies with significant AI capabilities to assess their competitive implications.

The study will adopt a global perspective, incorporating a comparative analysis of existing and evolving regulatory frameworks governing AI systems and applications in other major jurisdictions. This will provide valuable insights for the CCI as it crafts effective regulatory approaches for India’s AI landscape.

By gaining a deeper understanding of the opportunities and challenges presented by AI, the CCI aims to ensure this technology fuels innovation and benefits consumers while safeguarding fair competition.