The Portuguese Competition Authority (AdC) has launched a Short Paper Series focusing on competition dynamics in generative AI markets, building upon the Issues Paper released in November 2023. The first paper in the series delves into the evolving landscape of data access and usage in generative AI, particularly highlighting the significance of data licensing agreements and their implications for competition.

Data plays a crucial role in generative AI models, alongside computing power and expertise. Recent trends indicate a shift from freely available data to proprietary data, with intellectual property holders increasingly seeking compensation. This trend could potentially strengthen data-driven advantages and lead to market concentration.

The rise of data licensing agreements between IP holders and generative AI developers has become more prominent. The AdC cautions against exclusivity clauses in these agreements, as they could harm competition, especially if the data holders hold a dominant position. Additionally, the use of synthetic data and data pre-processing is gaining importance in training efficient AI models, impacting market entry barriers and competition dynamics.

To address competition risks in generative AI data access, ensuring fair access to data for developers is crucial. Measures such as providing data through open APIs, implementing flexible pricing structures, and facilitating access to public datasets can promote a level playing field. Moreover, leveraging knowledge-sharing channels like open-source models can help mitigate scale effects resulting from experimentation in data pre-processing.