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AI Is Attracting Antitrust Regulatory Scrutiny
There has been much hype around the potential of Artificial Intelligence (AI) to transform life and work. Many industries are looking to implement the paradigm shift that this technology offers. While companies are eager to develop and implement AI solutions, ensuring compliance with laws and regulations can help companies avoid costly and disruptive enforcement action.
While some jurisdictions are enacting or proposing AI-specific regulation, many existing regulatory frameworks apply to new technologies, including antitrust. Companies may experience different potential antitrust risks depending on the type of AI technology and their use of that technology.
Generative AI, technology that generates text and images based on prompts, may be the most popular form of AI technology at the moment as it is accessible to the general public through programs such as ChatGPT. However, there are also other forms of AI technology — e.g., pricing algorithms. Competition concerns related to the development of AI include access to key inputs, network effects, and other unfair methods of competition. Concerns related to the use of AI depends on the use case.
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During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.
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