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Artificial Intelligence markets: Recent developments and competition issues
Competition in AI markets has broad implications for economic growth. This Policy Brief draws on previous OECD work on AI markets and competition and incorporates updated evidence on recent developments. Overall, this body of work and the new updates present a mixed picture. While specific segments of AI markets ？ particularly foundation models ？ have shown dynamism over the past three years, several structural risks persist along different layers of the AI value chain. AI development and deployment are reshaping business performance, cost structures and strategic advantages, with important implications for market power. In particular, incumbent positions may become entrenched in the long run, especially in structurally concentrated market segments (e.g. hardware, data).
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