Generative artificial intelligence (AI) is the most searched topic of 2023 on the online encyclopedia Wikipedia and is considered to be the technology that has the greatest potential to transform and take most industries to the next level. At the same time, artificial intelligence is expected to change the dynamics of competition in markets and give rise to new forms of anti-competitive behavior, prompting regulators to more actively investigate the sector.
Many competition authorities, such as those in the US, UK and Portugal, are already investigating the impact of language patterns and AI applications (such as chatbots) on competition in the digital sector.
Research by Portugal’s competition authority, for example, shows that the AI application development market faces significant barriers to entry due to scaling effects and high switching costs, including:
- Language model barriers – language model developers face significant financial constraints when training, validating and launching new language models; in addition, a significant number of language model vendors have begun to invest in GPU (CPU) capabilities to provide their computing power and thus better vertical integration;
- Barriers to data collection – The need to collect a large volume and variety of data is another significant barrier to market entry. Some developers of AI apps, like Google or Microsoft, take advantage of the data they already have and run it in other apps.
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The article was signed by Sonia Voinescu, senior coordinator of lawyers at D&B David y Baias.
Article supported by PwC Romania
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.