The Competition Commission of India (CCI) has released a market study emphasizing the importance of AI self-audits and transparency to prevent algorithmic collusion, price discrimination, and lack of market transparency.

To address emerging challenges, the CCI proposes initiatives including conferences, workshops, strengthening technical capabilities, establishing a think tank on digital markets, and improving inter-regulatory coordination.

Major concerns include market concentration, ecosystem lock-in, opaque algorithms, and the risk of collusion, with 37% of AI startup respondents perceiving collusion risks.

The AI value chain in India is divided into upstream layers—data, infrastructure, development, foundation models—and downstream layers like model fine-tuning and deployment, with global firms dominating upstream segments.

India is developing its AI governance frameworks through national strategies and data protection laws, aligning with international efforts by the US, EU, China, and Japan to promote transparency and accountability.

AI adoption is rapidly expanding across sectors such as banking, healthcare, retail, logistics, and agriculture, with use cases including fraud detection, personalized recommendations, and AI-driven diagnostics.

The global AI market is projected to grow from USD 244 billion in 2025 to USD 1 trillion by 2031, with India’s market expected to expand from USD 7.84 billion to nearly USD 32 billion in the same period.

A survey indicates high AI usage in India for customer monitoring, supply chain tracking, and demand forecasting, contributing to an expected CAGR of 39-43% between 2025 and 2032.

From 2020 to 2024, the global AI market more than doubled, and India’s AI market grew from USD 3.2 billion to USD 6 billion, with substantial growth forecasted.

The downstream AI ecosystem is rapidly expanding, with most startups focusing on application layers and relying on open-source tools and technologies like ML, NLP, and generative AI.

Legal experts emphasize translating these insights into clear compliance expectations for businesses to foster responsible AI development.

The proposed initiatives are timely, aiming to address challenges in AI regulation amid rapid technological advancements.

Major global AI players include OpenAI, Microsoft, Google, and Meta, while Indian startups like Observe.AI and Ola Krutrim are also prominent in the ecosystem.