UK scrutinizes AI models as rapid growth fuels security concerns

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LONDON, May 4 (Reuters) – Britain’s competition regulator said on Thursday it would start examining the impact of artificial intelligence on consumers, businesses and the economy and whether new controls were needed on technologies such as OpenAI’s ChatGPT.

While AI research has been dragging on for years, the sudden popularity of generative AI applications such as ChatGPT and Midjourney has highlighted a technology that could disrupt the way businesses and society work.

Governments around the world are now trying to find a balance that allows them to assess and control some of the potential negative consequences of AI without stifling innovation.

In March, Britain opted to divide regulatory responsibility for AI between bodies that oversee human rights, health and safety and competition, rather than create a new body dedicated to the technology. .

The Competition and Markets Authority (CMA), which grabbed headlines last week by blocking Microsoft’s $69 billion takeover of Activision Blizzard, said it would begin work seeking to understand how basic models that use large amounts of unlabeled data were developing.

CMA CEO Sarah Cardell said AI has burst into the public consciousness and is growing rapidly.

“It’s crucial that the potential benefits of this transformative technology are easily accessible to UK businesses and consumers, while people remain protected against issues such as false or misleading information,” she said.

The review in Britain echoes inquiries taking place around the world, from Beijing to Brussels and Washington.

Attorney Alex Haffner of law firm Fladgate said the CMA would investigate under its general powers and as such would likely seek to better understand AI rather than take enforcement action against individual companies.

“That said, in a context where the CMA is being granted ever greater powers to investigate and hold Big Tech to account, this announcement only reinforces that the CMA is committed to using those powers as broadly as possible. “, he said.

The United States is exploring possible rules to regulate the technology, and digital ministers from major Group of Seven economies agreed last month to adopt “risk-based” regulations on AI that would also safeguard an environment open for the development of these technologies.

G7 member Italy took ChatGPT offline last month to investigate its potential breach of personal data rules. While Italy later lifted the ban, the move inspired other European privacy regulators to launch investigations.

Linklaters lawyer Verity Egerton-Doyle said the review would give the UK competition regulator the chance to join the debate.

“The EU Digital Markets Act, which came into full force this week, does not cover generative AI and the CMA undoubtedly sees this as an opportunity to lead the global debate on these issues – alongside the US FTC which is already investigating the area,” she said.

Reporting by Muvija M; Editing by Kate Holton

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