Mon, May 27, 2024 at 05:41

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I want to discuss a significant event that took place at Myeongdong Post Tower in Seoul.

  • The KFTC and OECD held a conference on 'Generative AI and Competition Policy' on the 27th of May.

  • 
• Annie

  • Oh, that sounds interesting!😊 What exactly is generative AI?

  
• 

  Kang-hoon

  • Generative AI is a technology that generates new content through analysis and learning by artificial intelligence based on various types of data such as text, images, and videos.

• Annie

  • I see.

  • So, who attended this conference?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • The conference was attended by high-level officials from various organizations, including Korea Fair Trade Commissioner Han Ki-jeong and OECD Competition Commission Chairman Frederic Jenny, as well as experts from academia and the private sector.

• Annie

  • Wow, quite a lineup!

  • What topics were discussed?

  
• 

  Kang-hoon

  • The conference was divided into three parts.

  • The first part focused on the role of competition policy in generative AI supply chains, discussing potential risks, responses from Korean and Japanese competition authorities, and policy implications.

• Annie

  • That sounds comprehensive.

  • What about the second part?

  
• 

  Kang-hoon

  • The second part covered competition issues and strategies related to data in AI models.

  • It discussed the importance of data in AI-based models, solutions to competition concerns arising from data, and policy directions for competition authorities.

• Annie

  • Data is indeed crucial.

  • And the third part?

  
• 

  Kang-hoon

  • The third part discussed competition in cloud computing services and AI, including potential market distortions related to cloud infrastructure services, competition concerns, and policy implications.

• Annie

  • It seems like they covered a lot of ground.

  • What did the KFTC Chairman say in his opening remarks?

  
• 

  Kang-hoon

  • KFTC Chairman Han Ki-jeong emphasized the need to prevent market participants from engaging in unfair behavior and to create a foundation for fair competition.

  • He highlighted the importance of the conference in laying out the direction of competition policy.

• Annie

  • That's a strong statement.

  • Did he mention anything else?

  
• 

  Kang-hoon

  • Yes, he also mentioned the KFTC's current AI policy paper and expressed hope that it would help increase predictability for innovative companies and establish a fair competitive order in the AI field.

  • 
• Annie

  • Interesting.

  • What did the OECD Competition Commissioner say?

  
• 

  Kang-hoon

  • OECD Competition Commissioner Frederic Jenny emphasized the need for balanced regulation to foster innovation while ensuring market fairness.

  • He highlighted the new competition concerns arising from the growth of the digital sector.

• Annie

  • Balanced regulation sounds essential.

  • What are the next steps for the KFTC?

  
• 

  Kang-hoon

  • Based on the discussions at the conference, the KFTC will explore ways to promote competition policy in the rapidly changing era of generative AI.

• Annie

  • So, Kang-hoon, do you think this news is good or bad for the market?

  
• 

  Kang-hoon

  • I would say it's a mixed bag, but leaning towards a negative impact in the short term.

  • The emphasis on regulation and competition concerns could create uncertainty for companies operating in the AI sector.

  • This could potentially slow down innovation and investment as companies navigate the new regulatory landscape.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.