M&As in AI space may need scrutiny: CCI

Mergers, acquisitions, and other partnerships in the artificial intelligence (AI) ecosystem may need to be scrutinised for their "likely effect on competition", India's antitrust watchdog said in a market study of the AI sector released on Monday.

"The AI ecosystem is also witnessing partnerships amongst players across layers in the AI stack. These partnerships can spur growth and innovation by facilitating access to critical inputs, technologies etc. However, such partnerships in the AI space may also raise competition concerns under certain conditions," the Competition Commission of India (CCI) said.

"For instance, exclusive partnerships may distort the competitive landscape by foreclosing access to essential resources. Even non-exclusive agreements, may create dependencies and lock-in due to high switching costs thereby having exclusionary outcomes," it added.