Assistant Attorney General Jonathan Kanter delivered remarks at the Promoting Competition in Artificial Intelligence Workshop on May 30, 2024. The event was co-hosted by the Stanford Institute for Economic Policy Research and the Stanford Graduate School of Business.
Kanter began by acknowledging Dr. Susan Athey, a Stanford professor and chief economist, praising her contributions to the field. "Susan is truly one of the smartest and most accomplished minds in the world," he said.
The workshop focused on understanding how artificial intelligence (AI) can promote competition while mitigating potential threats. Kanter highlighted historical examples where antitrust enforcement facilitated innovation and market growth, such as the breakup of Standard Oil and AT&T.
"We meet today at the dawn of a new technological revolution," Kanter stated. He emphasized that AI's reliance on vast amounts of data and computing power could advantage dominant firms, potentially stifling competition. "Powerful network effects may enable dominant firms to control these new markets," he warned.
Kanter also expressed concerns about AI's impact on creators' compensation, noting that generative AI leverages human creations like knowledge, art, writing, and ideas. "Absent competition to compensate creators for their works, AI companies could exploit monopsony power on levels we have never seen before," he said.
He stressed that proper compensation for creators is crucial not only for entertainment but also for free expression and other critical sectors like healthcare. "The people who create and produce these inputs must be properly compensated," Kanter asserted.
Despite these challenges, Kanter remained optimistic about antitrust laws adapting to new market realities driven by AI innovations. He assured that the Antitrust Division is actively examining the AI ecosystem through policy work and enforcement actions under existing laws like the Sherman Act and Clayton Act.
"If firms in the AI ecosystem violate antitrust laws, the Antitrust Division will have something to say about it," he concluded.
Kanter expressed eagerness to engage with experts during the workshop to further understand emerging issues within different sectors impacted by AI technology.
___