We the examine competition policy implications of the rapidly expanding Artificial Intelligence (AI) sector. We analyze the vertical AI stack, data feedback loops, and network effects to address three key questions: the potential for market concentration in core AI services, AI's likely impact on existing market structures, and emerging competition policy challenges. We identify key risks to competition in the AI sector, ways in which AI may disrupt some existing platforms, how AI could lead to new types of gatekeepers, and some novel competition policy concerns arising from AI. You can read the full paper here.
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