The Autorité de la concurrence is conducting an investigation into the competitive functioning of the generative AI sector, focusing on strategies employed by major digital companies to strengthen their market dominance. The inquiry encompasses areas such as cloud infrastructure, data access, and workforce skills.

Competition law advisors are advised to stay informed about developments in the generative AI sector to understand their impact on market competition and potential regulatory changes. The sector, which involves AI models creating new content like text, images, or videos, is of global interest and is being prioritized by public authorities in France and the EU.

In the generative AI value chain, major digital companies, model developers, IT component suppliers, and cloud service providers play key roles. Barriers to entry in this sector include the need for specialized AI chips, access to cloud services, and substantial amounts of data.

Competition dynamics in the generative AI market are influenced by factors such as shortages in AI chips, reliance on cloud services for computing power, data access concerns, and the high investment requirements for model developers. Major digital companies have advantages in AI development due to their access to resources like computing power, data, and skilled employees.