The Competition Bureau has released a report highlighting the evolving challenges and opportunities artificial intelligence (AI) poses to market competition in Canada. The document, Consultation on Artificial Intelligence and Competition: What We Heard, summarizes feedback received during a consultation process that drew input from 28 domestic and international contributors, including legal experts, academics, industry groups, and large technology firms.
The consultation, which ran from March 20 to July 7, 2024, focused on AI’s impact on competition and the adequacy of existing antitrust laws. According to the report, rapid advancements in AI, coupled with significant investments by large incumbent firms, are reshaping market dynamics in ways that could both promote and hinder competition.
Four key themes
The report outlined four key themes:
- Advancements in AI, from foundational models to end-user applications, are introducing new market dynamics that require closer scrutiny.
- Heavy investment, particularly by dominant firms, raises concerns about the potential for market power to suppress competition and innovation.
- AI can facilitate anti-competitive practices, raising questions about whether current antitrust frameworks are sufficient to address emerging challenges.
- Respondents broadly supported the Bureau’s role in fostering a competitive AI marketplace and suggested further collaboration and consultation.
“The Competition Bureau needs to be at the forefront of AI and understand its impact on competition across the economy,” said Commissioner of Competition Matthew Boswell. “The submissions received will shape our understanding and future work in this space.”
Updated laws?
The Bureau’s report also noted that AI’s role in facilitating anti-competitive behaviour, such as collusion or abuse of dominance, warrants continued examination. Submissions indicated that existing laws may need updating to address these challenges effectively.
The consultation feedback and the resulting report are part of the Bureau’s broader efforts to ensure a competitive marketplace in the AI era. The Bureau plans to continue engaging with stakeholders and monitoring developments in the sector.
In line with the consultation’s theme, the report itself was drafted using both human effort and AI technology, with final edits completed by Bureau personnel.
