Competition Policy: A Key to India's AI Superpower Ambition

During a session at the Inter-Pacific Bar Association (IPBA) conference, Deepak Anurag, a member of the Competition Commission of India (CCI), emphasized the critical role of artificial intelligence (AI) in bolstering India's status as a global economic power. Anurag stated, “AI has the potential to accelerate progress, provided it is embedded within the framework of competitive markets.” He highlighted that AI has transitioned from a research-focused technology to a general-purpose tool integrated into various sectors, including production, distribution, and decision-making.

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Anurag cautioned that the rapid adoption of AI introduces new competition risks that regulators must address. He noted that the CCI has proactively studied the AI ecosystem to identify these emerging concerns. The CCI's market study on AI is intended as a diagnostic tool rather than a regulatory enforcement document. It aims to explore the growing use of AI in sectors such as financial services, healthcare, retail, logistics, and marketing, while flagging potential risks like market concentration and targeted price discrimination.

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Anurag stressed that innovation and competition must coexist for India to realize its economic ambitions. He asserted, “Competition policy is not an obstacle to progress. It is an essential condition for sustainable and broad-based development.” This sentiment was echoed by Bhavna Verma from Schneider Electric, who pointed out the significant energy demands of AI infrastructure and the necessary investments to support India's ambitions. Verma advocated for governance frameworks that foster innovation while managing associated risks.

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From a global standpoint, Matt Takeshi Komatsu of Mori Hamada highlighted the trend of cross-border investments driven by AI, particularly in digital infrastructure and data centers. He noted that policymakers worldwide are still navigating the complexities of regulating AI, seeking a balance between fostering industry growth and ensuring adequate oversight.

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Industry representatives shared insights on the practical applications of AI. Manish Gupta, Chief Information Officer at Aditya Birla Group, revealed that over 50% of the company's clothing designs are now generated by AI. He noted significant improvements in productivity, stating that the time required to prepare a legal case has decreased from two days to two hours due to AI tools. Gupta emphasized the urgency for India to adopt AI aggressively, warning against missing the current technological revolution.

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As AI becomes increasingly integrated into everyday life and business, the panelists agreed on the necessity of a risk-based, light-touch regulatory approach. This strategy aims to balance innovation, investment, and consumer protection amid the intensifying global competition for AI leadership. The consensus underscores the importance of competition policy in facilitating India's journey toward becoming an AI superpower.

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• “AI has the potential to accelerate progress, provided it is embedded within the framework of competitive markets.” — Deepak Anurag, CCI Member

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• “Competition policy is not an obstacle to progress. It is an essential condition for sustainable and broad-based development.” — Deepak Anurag, CCI Member

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• “We lost the industrial revolution in the past. We cannot miss the AI revolution.” — Manish Gupta, CIO, Aditya Birla Group

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• “We are already living in AI.” — Shin Jae Kim, Partner, Tozzini Freire Advogados

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