CCI Pushes for AI Self-Audits to Safeguard Competition

The Competition Commission of India (CCI) has issued a guidance note advising companies to undertake self-audits of their artificial intelligence (AI) systems, which is an important step towards preventive competition regulation in digital markets.

The guidance note, attached to the Market Study on Artificial Intelligence and Competition, encourages companies to check their AI tools at every stage, like when they are being created, used, and watched over, to make sure they don’t lead to unfair competition.

Six core components of the self-audit framework have been identified as governance and oversight to evaluate risk factors and establish clear responsibilities and involvement; review of algorithm design and development to eliminate bias and document design choices; testing of systems for unintended competitive effects; monitoring AI systems and control; maintenance of transparency; and compliance integration. 

The note also provides steps for implementing the self-audit framework, a list of suggested documentation to facilitate competition compliance and a checklist for entities to proactively identify and address potential competition concerns.

The study, conducted through the Management Development Institute Society (MDIS), highlighted how the advent of AI has led to emerging issues having a bearing on competition and suggests continued emphasis on measures and policy initiatives by the government to facilitate access to AI infrastructure and to enhance AI capabilities, with a view to remove entry barriers and foster a level playing field in the development and deployment of AI in India.