Paper Contents
Abstract
This report explores the intricate relationship between artificial intelligence (AI) and market competition, highlighting its paradoxical role as both a catalyst for innovation and a driver of market concentration. By synthesizing academic and industry literature, the study analyzes mechanisms through which AI enhances operational efficiency, fosters data-driven decision-making, and leverages data network effects. The findings reveal a dual impact: while AI lowers entry barriers for startups and democratizes access to advanced tools, it simultaneously reinforces the dominance of incumbent super firms through scale, talent, and proprietary data. The report further examines regulatory challenges such as algorithmic collusion and the limitations of traditional antitrust frameworks. It concludes by outlining strategic implications for businesses and proposing forward-looking policy measures to ensure that AI-driven growth fosters fair and sustainable competition in the global economy.
Copyright
Copyright © 2025 Dr. Chilukuri Venkat Reddy1. This is an open access article distributed under the Creative Commons Attribution License.
