AI oligopoly
There’s a lot at stake here. AI is often talked up by the ministers as the key to overhauling the state, getting it to work more efficiently and cheaply. It’s a story that has become hugely important in many countries. If progress slows, that promise will be questioned.
In its report, the committee drew attention to the market power of a small band of AI companies. The tech industry has a tendency towards monopolies over time, it said, but with AI it was starting from this position, which might lead to technological lock-in and higher costs, hindering development in the long term.
According to the Open Cloud Coalition (OCC), a recently formed lobby group of smaller cloud providers backed by Google, the UK government’s struggles with AI mirror what happened with cloud deployment from the 2010s onwards, which included the lack of competition.
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