What are the Competitive Harms Triggered by Artificial Intelligence?
Ahmad Sabirin, Anna Maria Tri Anggraini · Jurnal Persaingan Usaha · 2025
This research aims to identify and analyze various kinds of competitive damage caused by AI. These goals include understanding how AI can affect market interactions, as well as how regulations and policies can be used to address such damage. AI technology has affected various economic, political, and social aspects. However, one of its most significant implications is its impact on competition in the market. AI can affect competition in various ways, including collusion between algorithms, herding, and self-preference. The exciting findings of this study show losses or damages. Some of the following things are: 1) AI can learn to coordinate automatically, significantly affecting competition. Competing algorithms can produce the same behaviour and the same choices, which can lead to collusion. 2) algorithms that use the same data or are built similarly can produce the same behaviour, leading to herding. 3) AI can restrict access or give preferences to companies themselves, which can disrupt competition. 4) AI can be used to manipulate the preferred architecture by downstream companies, which can disrupt competition. 5) AI can be used to restrict access or limit competition in unhealthy ways. Based on these findings, the authors would like to provide the following recommendations: 1) Stricter regulation is needed to ensure that AI is not used to disrupt competition. 2) Competition authorities should investigate companies that use AI to ensure they do not violate competition rules. 3) Better education and understanding of how AI works and how regulation can be used to address competitive damage. 4) Responsible and explainable algorithm development is necessary to ensure that AI is not used to disrupt competition.