AI Impact Summit 2026: Govt Links AI Growth with Competition Concerns

As India prepares for the AI Impact Summit 2026, the government is sharpening its focus on ensuring that the country’s rapid adoption of artificial intelligence does not undermine fair competition in digital and enterprise markets.

A market study released by the Competition Commission of India (CCI) in September highlights that while AI is expected to play a central role in driving productivity, innovation and economic growth, it also raises new competition challenges that need to be addressed alongside scale and deployment.

“AI-driven markets may exhibit a tendency towards concentration, particularly where access to data, computing infrastructure and specialised talent is uneven,” the CCI said in the study on artificial intelligence and competition.

Report gains relevance ahead of AI Impact Summit 2026

Although the study predates the summit, its findings are increasingly being referenced as policymakers prepare to outline India’s AI trajectory at the February event. The report’s assessment of market structure, data advantage and algorithmic decision-making provides a framework for discussions on how AI growth can be aligned with competitive market outcomes.

The AI Impact Summit 2026 is expected to showcase India’s progress across domestic foundation models, AI infrastructure and skilling initiatives, positioning the country as both a large-scale adopter and an emerging contributor to global AI development.

The CCI study notes that AI systems are becoming deeply embedded across pricing, logistics, content delivery, finance and digital platforms, giving firms deploying advanced algorithms a growing influence over market outcomes.

“The use of algorithms for automated decision-making can impact competitive dynamics in ways that may not be immediately observable,” the report said, adding that opaque or “black-box” systems can complicate the assessment of exclusionary or discriminatory conduct.

Algorithmic pricing and coordination risks

One of the key concerns flagged in the study relates to algorithmic pricing tools, which are increasingly used by firms to adjust prices in real time.

According to the CCI, “pricing algorithms may learn to coordinate market behaviour without explicit human intervention or agreement,” potentially leading to outcomes similar to cartelisation even in the absence of direct communication between competitors.

Data advantage and self-preferencing

The regulator also points to the competitive implications of data concentration, warning that firms with access to large, proprietary datasets may reinforce their market position by training more effective AI models.

“Access to high-quality and proprietary data can act as a significant entry barrier for new and smaller firms,” the report said, noting that this could limit innovation if market power becomes entrenched.

Self-preferencing through AI-driven rankings and recommendations is another area highlighted for closer scrutiny, particularly in platform-based markets.

Govt Flags competition-aware AI governance

The CCI does not advocate restrictive regulation. Instead, it states that India’s existing competition framework remains applicable to AI-driven markets, provided regulators strengthen technical capacity and engage closely with industry.

“The objective is not to stifle innovation but to ensure that the benefits of AI are realised in a competitive and contestable market environment,” the report said.

As the government readies its AI messaging for the summit, competition policy is emerging as a complementary pillar alongside innovation, infrastructure and skilling.