Regulating Artificial Intelligence: From BRICS to Beyond

Once a collection of fragmented technologies with limited applications, AI has rapidly evolved into a crucial driver of innovation across diverse sectors, including the digital economy. However, the AI industry at risk of becoming oligopolistic under existing Big Tech. Through investments and partnerships, Big Tech have already positioned their influence in the developments of AI whilst avoiding conventional regulatory merger probes. The recent partnerships between Microsoft and OpenAI is a prime example. Such cases have focused attention on the pressing need for competition authorities to adapt and harmonize their approaches to regulating the digital economy.

On 12 September 2024, Elena Rovenskaya presented (virtually) at the BRICS Seminar on Artificial Intelligence Regulation hosted at the School of International and Public Affairs of Shanghai Jiao Tong University in Shanghai in collaboration with the BRICS Competition Law and Policy Center. The seminar invited presenters from various experts from BRICS nations involved in the development of AI regulation.

In her presentation, Rovenskaya discussed how integrated systems analyzes can enable competition authorities to better evaluate the potential outcomes of strategic partnerships between entities in the digital economy which typically fly under the radar of merger criteria. Specifically, she introduced system dynamics modelling including causal loop diagrams which enable us to illustrate complex systems as a set of interacting components whereby the components and their relevant interactions are informed by literature, expert opinion, or stakeholder inputs.

The latest explorations of the ECOANTITRUST reveal the potential loss of strategic independence for AI service providers through various partnerships with Big Tech incumbents. In 2019 for example, Microsoft and OpenAI entered a partnership involving various investments and product integrations. Despite raising concern, several competition authorities have failed to realize probe into the partnership. Rovenskaya presented analysis developed by the ECOANTITRUST team informed by public discussions on the Microsoft-OpenAI partnership following their governance controversies of the latter in late 2023. The analysis indicates numerous pathways and feedback loops through which the reduction of the strategic autonomy of Open AI affects competition and innovation in the AI sector. The presentation was well-received, with experts commenting that the need to integrate systems-led analyzes in competition law is greater than ever before.

ECOANTITRUST continues its efforts to translate systems-led approaches and tools for BRICS competition law and policy experts in the context of the digital economy.

To read our pre-print publication, click here.