The CMA review will examine foundation models, including generative AI, and their development, and provide an assessment of the conditions and principles that will guide their development and future use.

This initial review will examine how the competitive markets for foundation models and their use could evolve, and explore opportunities and risks for competition and consumer protection.

Guiding principles to support competition and protect consumers as AI foundation models develop will also be produced by the CMA.

The review will also examine whether the development of the industry can be supported against five overarching principles.

The principles are safety, security and robustness; appropriate transparency and explainability; fairness; accountability and governance; and contestability and redress.

Other important questions raised by foundation models – such as copyright and intellectual property, online safety, data protection and security – are not included in the scope of this initial review.

The CMA will work with the Office for AI and fellow members of the Digital Regulation Cooperation Forum on the review and share findings with government to help inform the UK’s AI strategy.

Businesses, academics and public policy stakeholders are also invited to provide views or evidence on foundation models to the CMA by 2nd June 2023.

Sarah Cardell, chief executive at the CMA, said: “AI has burst into the public consciousness over the past few months but has been on our radar for some time. It’s a technology developing at speed and has the potential to transform the way businesses compete as well as drive substantial economic growth.

“It’s crucial that the potential benefits of this transformative technology are readily accessible to UK businesses and consumers while people remain protected from issues like false or misleading information.

“Our goal is to help this new, rapidly scaling technology develop in ways that ensure open, competitive markets and effective consumer protection.”