The Role of AI in Enhancing US Business Competitiveness
Artificial intelligence (AI) is affecting several sectors of the economy at a rapid pace. The role of governments and policymakers in understanding and tackling the ramifications of AI is evident. The Competition Bureau (the "Bureau") is constantly working to better understand AI, how it may effect competition, and how we can plan to remedy possible competitive harm from AI, as well as promote competition in AI markets.
On this front, the Bureau engages in cross-governmental collaboration
working with the Office of the Privacy Commissioner (OPC) and the Canadian Radio-Television and Telecommunications Commission (CRTC) through the Canadian Digital Regulators Forum to address the implications of emerging technologies, including AI, as they intersect our respective mandates. This study examines numerous aspects of how AI may effect competition in the context of Canadian competition law. It is not intended to predict any outcomes or make suggestions. Rather, the goal is to generate meaningful and educated discourse that will assist the Bureau in better understanding how competition is evolving in AI markets, as well as how the Bureau can enforce and support competition in these markets.
Section one presents the notion of AI, delves into proposed definitions of AI, and breaks down AI technology.Section two examines the markets involved in the creation of an AI product or service.Section three discusses how AI may effect competition. The impacts of competition are examined in the context of the Bureau's enforcement areas, specifically mergers and monopolistic practices, cartels, and deceptive marketing practices. Section three also discusses how the Bureau might collaborate with policymakers to improve competition in AI marketplaces.Section 1: Introduction to Artificial Intelligence 1.1. Exploring definitions of artificial intelligence.AI as a theory and empirical fact has been around for a long time. The area of artificial intelligence gained traction in the 1950s, with an emphasis on adapting tasks such as problem solving, reasoning, and even game playing for computer use. John McCarthy created the term "the science and engineering of making intelligent machines" in 1956.Footnote1 Since then, other definitions have been presented in academia, industry, and government, but no universal agreement has been reached.Footnote2 Despite recent advances and unique technologies, there is no uniform definition of artificial intelligence. One challenge in reaching an agreement on an acceptable common definition for AI is a lack of understanding and consensus on human intelligence.
AI has frequently been defined and understood from various perspectives, contributing to a lack of unanimity on its definitions
There is the academic perspective, which regards AI as a discipline or branch of computer science. With the evolution of technology-driven business models and service delivery, AI as tools and applications has taken on an industrial perspective. More recently, certain organizations and governments have concentrated on developing a definition of an AI system from a broader adoption and governance standpoint.Footnote3 For example, the Artificial Intelligence and Data Act, a component of Canada's Bill C-27, defines AI as "a technological system that, autonomously or partially autonomously, processes data related to human activities using a genetic algorithm, a neural network, machine learning, or another technique in order to generate content or to make decisions, recommendations, or predictions." The governance perspective is required for a working definition to examine the effects of AI on competition and market dynamics.The impact of AI on competition and market dynamics is a multifaceted environment. On the one hand, artificial intelligence (AI) can boost competitiveness by encouraging innovation, lowering entry barriers, and increasing efficiency. Concerns have been raised, however, about the concentration of AI skills in a small number of prominent corporations. This could lead to anticompetitive activity and higher prices, as well as a reduction in choice or inferior quality options for AI users. While there is no widely agreed definition of AI, we must comprehend and assess its influence on competition. Our ability to do so is critical to defending competition and ensuring that Canadian businesses and consumers benefit from competition in all sectors, including artificial intelligence. We can accomplish this by examining individual AI technologies and the marketplaces, products, and services in which Canadian consumers and enterprises encounter them.
Breaking down artificial intelligence
To better comprehend artificial intelligence and how it is being used in Canadian markets, it is useful to grasp the many technologies that comprise AI. Consumers can benefit from AI by receiving individualized services, an improved customer experience, and access to new and innovative products. The following list summarizes some of the technologies that may be included in an AI product or service. These issues can have an impact on customers, businesses, and communities.Natural language processing (NLP) approaches enable machines to interpret and generate human language.Large language models (LLMs) combine NLP and deep learning approaches. LLMs are trained on large quantities of data and employ learned patterns to determine the next element in a sequence (for example, the next word in a sentence) based on a given input (such as a text prompt).Computer vision approaches enable machines to derive information from digital photos, videos, or other visual inputs, and then make recommendations or take actions based on the visual information evaluated.Generative AI is the use of natural language processing and machine learning techniques to produce new content, such as text, photos, videos, code, music, and synthetic data, based on patterns learnt from training data.Foundation models: AI technology is trained on large amounts of data and can be applied to a variety of jobs. Today's most common foundation models incorporate generative AI, and some practitioners use the phrase interchangeably. However, some research has pointed to discriminative AI, which may fit the concept of foundation models.Footnote4Discriminative AI refers to machine learning approaches that distinguish across data categories and are used for classification and prediction tasks.Robotics is the programming of robots to perform a set of tasks autonomously or semi-independently. Robotics, sometimes known as robots, are not inherently AI. AI robots are robots that are controlled by artificial intelligence systems.Knowledge-based systems are computer systems that employ knowledge to solve complex issues or make judgments.Expert systems are computer systems that leverage a knowledge base of human expertise to solve issues or make choices in a specific field of knowledge.
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