Artificial Intelligence (AI) has moved from being an experimental technology to a core enabler of economic transformation. As India positions itself as a global AI innovation hub, questions around who controls data, who benefits from algorithms, and how competition is preserved have taken centre stage.
Recognising this inflection point, the Competition Commission of India (CCI) has undertaken a landmark Market Study on Artificial Intelligence and Competition. The study provides one of the most comprehensive assessments of India’s AI value chain — spanning data, compute, foundation models, and user applications — while examining both its pro-competitive potential and emerging market risks.
This Policy Brief distils key findings from the study, exploring:
- How AI is reshaping competition across BFSI, healthcare, retail, logistics, and e-commerce, driving productivity and innovation while empowering MSMEs.
- The new frontiers of market power — from algorithmic collusion and self-preferencing to personalised pricing and opaque ecosystem dependencies.
- Lessons from global regulators — including the EU, UK, and US — and how India’s evolving legal architecture, through the Competition (Amendment) Act, 2023 and the proposed Digital Competition Bill, 2024, seeks to anticipate these challenges.
- Stakeholder perspectives from startups, industry leaders, and legal experts on what a fair and future-ready AI economy should look like.
The report doesn’t stop at diagnosis — it charts a way forward for a more equitable AI landscape, including:
- Self-audit frameworks for AI competition compliance.
- Transparency and documentation mandates to curb algorithmic opacity.
- Regulatory capacity building and cross-sector coordination among competition, data protection, and digital governance bodies.
- Global cooperation to align India’s AI policy trajectory with emerging best practices.
Yet, the study also leaves readers with pressing questions:
Will open-source models be enough to counterbalance the dominance of tech incumbents?
Can India’s regulatory institutions keep pace with self-learning algorithms that evolve faster than laws?
And ultimately — will AI level the playing field, or deepen digital divides?
Explore the full findings, sectoral insights, and stakeholder recommendations — download the complete Policy Brief to delve deeper into how AI is reshaping competition in India and beyond.
