This article discusses the implications of the use of AI-powered algorithms on consumers and competition.
Algorithms are pervasive in our daily lives. The rapid development and continued evolution of Artificial Intelligence (AI) technology have in turn propelled the use of even more sophisticated algorithms, many of which have improved market outcomes. However, the complexity of AI-powered algorithms poses new challenges to antitrust authorities in identifying potentially anticompetitive conduct.
In this article, authors Kirti Gupta and Avigail Kifer provide a closer look at the implications of the use of AI-powered algorithms on consumers and competition, and where antitrust economics may play a role, focusing on three broad areas: (1) pricing algorithms; (2) recommendation algorithms; and (3) algorithms for firm decision making.
The article was originally published in The Antitrust Source in February 2024.
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