CMA Sets Principles for Responsible Development and Use of Foundation Models (FMs) in ai Industry
The uk/about-us/” target=”_blank” rel=”noopener”>Competition and Markets Authority (CMA) has published guiding principles to ensure the responsible development and use of foundation models (FMs), which are versatile artificial intelligence systems with significant potential to revolutionize various sectors. The CMA aims to safeguard consumer protection and foster healthy competition within this emerging industry by adhering to the following principles:
- Protecting consumers: Ensure that FMs uphold high ethical standards, are transparent about their limitations and biases, and provide clear explanations of the ai’s decision-making process. This will help safeguard consumers from false information and potential ai-driven fraud.
- Fostering competition: Encourage a diverse range of businesses to compete successfully, challenging established market leaders. This will boost productivity and economic growth by promoting innovation through increased competition.
- Safeguarding data protection: Implement robust data privacy measures to protect personal information and maintain the trust of consumers. FMs must adhere to applicable laws, including the General Data Protection Regulation (GDPR) and the us/” target=”_blank” rel=”noopener”>California Consumer Privacy Act (CCPA).
- Promoting contact safety: Ensure that FMs are designed and deployed with security in mind. This includes the protection of users from harmful or illegal content, as well as addressing potential risks associated with ai-driven malicious activities.
- Encouraging innovation: Support the development and use of FMs by promoting collaboration, sharing best practices, and fostering a culture of learning among industry stakeholders. This will help drive economic growth while mitigating potential risks.
Foundation models have gained widespread adoption across various user platforms, including well-known names like ChatGPT and Office 365 Copilot. These ai systems hold the potential to drive innovation and stimulate economic growth by enabling transformative changes across sectors and industries. However, the CMA warns that weak competition or neglect of consumer protection regulations could expose individuals and businesses to significant levels of false information and ai-driven fraud. Moreover, dominant firms might exploit FMs to consolidate market power, offering subpar products or services at inflated prices.
To address these challenges and ensure the responsible development and use of FMs, the CMA will engage extensively with stakeholders both within the UK and internationally over the next few months. The collaborative effort aims to support positive growth in FM markets while fostering effective competition and consumer protection. An update on the CMA’s progress and the reception of these principles will be published in early 2024, highlighting the authority’s commitment to shaping ai markets in ways that benefit people, businesses, and the UK economy as a whole.
