White House Discusses Competition Policy, AI in Meeting
Yesterday, the White House held a meeting to discuss competition policy and artificial intelligence (AI). Led by Lael Brainard, Assistant to the President and National Economic Advisor, the meeting aimed to explore strategies for promoting fair and open markets while creating opportunities for small businesses and new entrants in the AI sector.
During the meeting, participants engaged in conversations about the risks associated with concentration within the AI ecosystem. The discussions revolved around supporting competition as AI systems continue to develop and become more widely used across the economy. Of particular concern were the high levels of concentration in the production of critical inputs such as semiconductors, computing power, cloud storage, talent, and data.
Participants also touched on the impact of open-source models and tailored AI applications on the competitive landscape. Collusive behavior and the need to scrutinize partnerships and investments within the industry were additional topics highlighted during the meeting.
The potential harms resulting from a lack of competition in the AI field were also addressed by participants. These include adverse effects on prices, quality, innovation, and privacy. Moreover, considerations were made regarding how the rise of AI could influence competition law and policy in the coming years, potentially exacerbating challenges like price-fixing and self-preferencing.
In light of these discussions, the meeting focused on identifying steps that the Biden-Harris Administration and other stakeholders can take to promote competition and ensure that the benefits of AI are accessible to a broader audience. Proposed actions include supporting publicly-funded research initiatives, utilizing procurement tools effectively, and implementing other measures to bolster competition.
The Biden-Harris Administration has consistently emphasized the importance of competition and innovation within the realm of AI policy. President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence urges agencies to prioritize competition in AI and related technologies. This order also directs support towards small businesses in commercializing AI products and establishes the National AI Research Resource (NAIRR) as a pilot program to provide federally-supported computing power, data, and resources to researchers and smaller companies.
The meeting witnessed the attendance of representatives from various White House entities and governing bodies, including the National Economic Council, National Security Council, Domestic Policy Council, Office of Science and Technology Policy, Council of Economic Advisers, Federal Trade Commission, and Department of Justice.
Stakeholders from organizations like the American Economic Liberties Project, Tech Oversight Project, Economic Security Project, The New School, Center for Democracy and Technology, AI Now Institute, Open Markets Institute, UC Berkeley School of Law, Demand Progress, Yelp, Vanderbilt Law School, Public Knowledge, and University of Tennessee College of Law also took part in the discussions.
The meeting’s focus on competition policy and AI reiterates the Administration’s commitment to fostering a competitive and innovative environment for AI development. By addressing concentration risks, promoting competition, and safeguarding consumer interests, the Administration aims to steer the AI sector toward responsible and inclusive growth.
As the AI landscape continues to expand, it is crucial for policymakers, industry experts, and other stakeholders to collaborate in establishing frameworks that ensure fair competition, protect consumers, and maximize the potential benefits of AI technology. Through strategic policy implementation, the Biden-Harris Administration strives to position the United States as a leader in AI while preserving a level playing field for businesses of all sizes.
