Rising Antitrust Concerns Amid AI Investment Boom

Major tech companies have spent over $30 billion acquiring artificial intelligence startups while facing mounting antitrust concerns, as states rush to fill the federal regulatory void with nearly 700 AI-related bills introduced in 2024 — an almost 400% increase from 2023.

The flurry of activity includes workplace-focused federal legislation targeting algorithmic bias and employee surveillance, with Colorado becoming the first state to enact comprehensive AI regulations.

Expert: Tech Giants’ AI Shopping Spree Raises Antitrust Red Flags

Major tech firms are raising alarms over potential anticompetitive practices linked to their acquisitions of AI startups. According to Notre Dame law professor Roger Alford, these companies may be sidestepping regulatory scrutiny by classifying their acquisitions under terms such as ‘partnerships’ or ‘acqui-hires.’

Amazon, Apple, Google, Meta, and Microsoft have collectively absorbed at least 30 AI startups, leveraging their existing monopolies in various sectors to potentially suppress competition. Alford noted, ‘This consolidation threatens both market innovation and national security.’

‘As others invest heavily in AI capabilities, we should be concerned that independent startups face barriers to accessing vital resources,’ he warned. He also pointed out the geopolitical implications of AI development, especially as countries like China aggressively pursue military applications.

Alford concluded, ‘If AI is to serve its proper role, we need a regulatory environment capable of limiting monopolizing power and ensuring innovation benefits everyone.’

AI Bills Surge as States Race to Regulate

A remarkable wave of AI legislation has emerged, with state legislatures introducing nearly 700 AI-related bills by 2024, compared to just 191 in the previous year. Reports suggest that this significant increase underscores growing action at the state level amidst federal stagnation.

States like Colorado have taken the lead by passing comprehensive AI laws, while California and Tennessee have implemented measures addressing data transparency and digital replicas. The legislation includes 113 new measures nationally, with 71 specifically targeting deepfake technology.

Despite the uptick in legislative activity, there remains a lack of consensus around a specific regulatory model, highlighting the complexities confronting policymakers.

AI Bill Package Aims at Workplace Automation

On the federal level, three bills are in progress, aiming to establish safeguards around the use of AI in workplace environments. These legislative proposals address important issues such as algorithmic bias, employee surveillance, and accountability in AI systems.

Senator Bob Casey’s ‘No Robot Bosses Act’ intends to prohibit solely AI-based employment decisions without human input, and the ‘Stop Spying Bosses Act’ mandates transparency in employee monitoring. Senator Ron Wyden’s ‘Algorithmic Accountability Act’ aims to ensure companies assess their AI systems for bias prior to deployment.

While the future of these bills remains uncertain, their existence reflects a growing momentum for regulating AI at both federal and state levels.