The Competition Commission of India (CCI) has published its report titled Market Study on Artificial Intelligence and Competition, conducted through the Management Development Institute Society (MDIS). The study aims to deepen understanding of India’s AI markets and ecosystems, identify potential competition concerns, and assess existing and emerging regulatory frameworks governing AI systems.

Using both primary and secondary research, including literature review, data analysis, stakeholder interviews, and surveys, the study provides a comprehensive view of the AI ecosystem, market dynamics, and its applications across industries. It also examines competition issues within the AI sector and its user industries, offering insights into trends shaping India’s digital economy.

The report highlights that AI adoption in India is accelerating rapidly across multiple sectors, transforming competition dynamics, business operations, and regulatory approaches. While AI offers major benefits in efficiency, innovation, and consumer experience, the report warns of emerging issues that could hinder fair competition and limit AI’s full potential.

The CCI report also reviews the evolution of AI-related regulatory frameworks in India and globally, recognising the need for proactive governance to keep pace with rapid technological change.

To promote a competitive and responsible AI ecosystem, the report recommends several measures:

The report further stresses the need for continued government support to improve AI infrastructure, foster accessibility, and remove entry barriers, ensuring a level playing field for innovation. Enterprises are also urged to self-audit AI systems for competition compliance and adopt transparency measures to reduce information asymmetry and prevent market distortions.