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News


CMA FOCUSES ON DATA FOR AI FOUNDATION MODEL




FOUNDATIONAL AI MODELS REQUIRE VAST AMOUNTS OF DATA. WITHOUT ACCESS TO DIVERSE
DATASETS, THE MARKET FOR FOUNDATIONAL MODELS RISKS BEING STIFLED

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By
 * Cliff Saran, Managing Editor

Published: 18 Sep 2023 14:15

Accountability, access, diversity, choice, flexibility and transparency are
among the key principles the Competition and Markets Authority (CMA) has set out
in its preliminary report on foundational AI models.



Discussing the report, Sarah Cardell, CEO of the CMA, said: “The speed at which
AI is becoming part of everyday life for people and businesses is dramatic.
There is real potential for this technology to turbo charge productivity and
make millions of everyday tasks easier – but we can’t take a positive future for
granted.

“There remains a real risk that the use of AI develops in a way that undermines
consumer trust or is dominated by a few players who exert market power that
prevents the full benefits being felt across the economy.”

The CMA said the proposed principles aim to guide the ongoing development and
use of AI foundational models to help people, businesses and the economy fully
benefit from the innovation and growth they can offer.

In the report, the CMA discusses the uncertainties over how businesses
developing foundational models can gain access to the increasingly large volumes
of training data they require. One approach is where the developer of the
foundational model obtains or identifies high quality data from web crawls.

However, the report’s authors note that access to large volumes of proprietary
data sources may become necessary to develop the most competitive foundational
models. As such, this could become a key factor that influences competition, but
it may stimulate a dynamic market of data providers who supply data on fair and
equal terms to a range of foundational model developers.

The CMA warned, however, that competition could potentially be stifled if the
most useful sources of proprietary data for training are only accessible to a
small range of existing developers. Copyright issues will also have an impact on
foundational models that rely on proprietary data.

The CMA reported that large technology companies’ access to vast amounts of data
and resources could provide them with an insurmountable advantage over smaller
organisations, making it hard for them to compete. But the report’s authors
noted that the extent of this advantage is uncertain, as it depends on a number
of factors, including economies of scale, economies of scope, and feedback
effects.

The CMA also looked at closed source and open source foundational model. The
authors of the report noted that closed source is likely to lead to the highest
performant foundational models.

But if AI-based applications are able to utilise foundational models with
different levels of performance, this would lower barriers to entry. Such lower
performant models would require less compute, less expertise and potentially
different data than at the cutting-edge models.

According to the CMA, this could be an area where open-source models have the
potential to provide a competitive constraint to closed-source models, even if
in the future open source is unable to achieve cutting-edge performance.

READ MORE ABOUT FOUNDATIONAL AI MODELS

 * Foundation models are large-scale, adaptable AI models reshaping enterprise
   AI. They hold promise but face risks like biases, security and environmental
   impact.
 * Microsoft has made the Florence foundation model available to a wider
   audience through Azure Cognitive Services. The service also is now available
   in Teams and other applications.



READ MORE ON ARTIFICIAL INTELLIGENCE, AUTOMATION AND ROBOTICS

 * UK COMPETITION WATCHDOG GIVES BROADCOM-VMWARE DEAL GREEN LIGHT TO GO AHEAD
   
   
   By: Caroline Donnelly

 * TIME TO TAKE CONTROL OF AI?
   
   
   By: Cliff Saran

 * CMA LOOKS AT COMPETITION IN FOUNDATIONAL AI
   
   
   By: Cliff Saran

 * MICROSOFT FAILS TO GET CMA THUMBS-UP ON ACTIVISION DEAL
   
   

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