In March, the bureau published a discussion paper on artificial intelligence (AI) and invited public feedback on issues including competition in AI markets and how the bureau can prepare to address competitive harm from AI.
“The submissions made one thing clear: AI brings tremendous opportunities, but also serious risks to consumers and competition. These risks are what competition agencies need to guard against,” Boswell said during Canada’s Competition Summit 2024 at Ottawa's National Arts Centre.
In August, the U.S. Department of Justice and eight states filed a lawsuit against the property management software company RealPage Inc., alleging an unlawful information sharing scheme that allowed property managers to increase apartment rental prices through the use of algorithmic pricing tools.
Algorithmic pricing tools allow companies to use data to train their algorithms to maximize profits by charging the highest possible accepted price while algorithmic collusion allows companies to fix prices through algorithms.
Boswell noted that the bureau is expanding its Digital Enforcement and Intelligence Branch, which includes a data and analytics team, design thinking practitioners, technology analysts, behavioural economists and intelligence analysts.
The commissioner also noted that some submissions highlighted the potential that AI could help boost the ability of small and medium businesses to compete with larger players by automating and optimizing processes.
Boswell did note, however, that the bureau also received submissions highlighting concerns that smaller firms may have a harder time accessing the data, the technology and the talent needed for AI development.
“This is especially true in markets where huge technology firms have existing infrastructure and access to large quantities of data. When a handful of tech giants hold so much control, competition is at risk.” Boswell said.
The commissioner also said that the submissions emphasized that AI is a major driver of innovation and that “both competition and good legislation” are necessary to foster AI innovation in Canada.
“AI systems are often a black box – we don’t know how they make their decisions. Transparency would allow us to see into this black box and understand how these systems work,” he said.
The bureau is preparing a report on the findings from the AI consultation which is set to be published by the end of 2024.
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