Generative AI Market: Big Tech Companies Cannot Be Allowed to Corner the AI Market. How Should They Be Stopped?

Editorial

16:10 JST, October 11, 2024

An expansion of Big Tech companies’ oligopoly into the generative artificial intelligence market, which has a large impact on society and the economy, would cause harm. The government must move quickly to ensure a fair environment for competition.

The Japan Fair Trade Commission has begun an investigation into the state of the generative AI market. This is due to the possibility that oligopoly by some large companies could lead to problems under the Antimonopoly Law, such as new companies being blocked from entering the market.

In addition to requesting information from companies, the JFTC will also hear from experts. The commission is reportedly expected to make public the results of its investigation as early as next spring and to present a policy for dealing with the issue.

Generative AI learns from vast amounts of data on the internet and creates answers with natural expressions and images, among other content. Developing this technology requires vast amounts of data, high-performance semiconductors and specialized human resources, as well as huge sums of money.

This market is in its infancy, but OpenAI Inc. and large American IT companies such as Google LLC and Microsoft Corp. are stepping up moves to fence off data and other resources. The JFTC is right to launch an investigation at an early stage to prevent any adverse effects.

The commission has cited “usage restrictions” as a concern, or specifically companies in a strong position monopolizing data and preventing competitors from using it.

It is also concerned about bundling, in which tech firms force people to use their own generative AI as a condition for providing existing services, and self-preferencing, where tech firms display their own services more often in search result summaries generated by their own AI. The JFTC should rigorously confirm the likelihood of these issues occurring.

This year, for the first time in more than 120 years of Nobel Prize history, prizes were awarded for AI-related research. It is said that the changes brought about by AI will exceed those of the Industrial Revolution, and the massive impact it could have on society must have been taken into consideration.

On the other hand, there is also a growing trend to mention the negative aspects of AI.

Geoffrey Hinton, one of this year’s winners of the Nobel Prize in Physics, is called the “Godfather of AI” for his groundbreaking papers on deep learning, a fundamental technology for generative AI.

However, he is now sounding the alarm over the deluge of misinformation, rampant fraud and the negative impact on elections, among other issues.

In existing digital markets such as search services, oligopoly by giant IT companies has caused harm while competition authorities around the world have stood by and done nothing.

If these companies are allowed to increase their dominance in the generative AI market as well, the negative impact could be significant. The same mistake must not be repeated.

Competition authorities in the United States and Europe have already begun investigations and have issued a joint statement expressing concern about oligopoly in the AI market. It is essential for Japan to strengthen cooperation and monitor the market.

(From The Yomiuri Shimbun, Oct. 11, 2024)