CCI calls for AI self-audits of businesses to safeguard fair competition

The Competition Commission of India (CCI) has urged businesses to conduct structured self-audits of their artificial intelligence (AI) systems to promote what it calls “responsible autonomy.” The call comes as part of the regulator’s latest market study on AI, developed in partnership with the Management Development Institute (MDI), which explores how AI adoption is transforming industries such as retail, logistics, finance, and healthcare.

According to the CCI, the increasing use of opaque and self-learning AI models poses a risk of “algorithmic collusion,” where automated systems could unintentionally align prices or strategies without human direction. Such practices, the study warns, can replicate price-fixing behaviour and threaten fair market competition. The report also pointed out that large technology companies—because of their access to extensive data sets, advanced computing infrastructure, and proprietary models—may strengthen their dominance, leaving smaller players and startups at a disadvantage.

To tackle these challenges, the CCI has proposed a six-step self-audit framework for enterprises. The framework encourages regular internal evaluations of AI models, detailed documentation of algorithmic objectives and data sources, clear accountability at senior levels, and periodic reviews to detect potential anti-competitive outcomes. These measures, the commission noted, can help increase transparency and prevent misuse of AI-driven systems.

The regulator emphasized that India’s approach should balance innovation with accountability. Alongside encouraging the use of AI by MSMEs, the CCI plans to bolster its own technical infrastructure, establish an AI-focused think tank, and host workshops on “AI and Competition Compliance.”

By promoting ethical governance, transparency, and self-regulation, the CCI aims to ensure that India’s rapidly growing AI ecosystem remains competitive, inclusive, and innovation-driven—positioning the country as a global leader in responsible AI development.