CCI Stresses for Self Audit of AI Tools by Companies to Prevent Misuse

The chairman of Competition Commission of India, Ms. Ravneet Kaur, has stressed upon the fact that Companies need to ensure that their AI tools do not break Competition Laws and advised them to do a self-audit on their AI tools. 

CCI has mentioned there are possibilities of misuse of AI to

• Keep prices high.
• Unfair use of differential pricing for different customers.
• Recommending its own products over others.
• It also becomes impossible to analyze how decisions are made by AI.

The Regulator proposes the Companies to conduct self-audit focusing on the following:

• Senior management taking responsibility regarding its usage.
• Review of design so that there is no built-in bias.
• Proper testing of the tools and its monitoring.
• Maintaining proper record for transparency and compliance.

OUR VIEW:

Communication by Regulators is the most important part of their function. But what they communicate is also very important. It is indeed a good step by the CCI to advise the Companies on critical issues related to AI. But what significant steps have been taken in that regard at the "ground level" too is something the end-users would want to know. The steps relate to both at the Regulators' end and at the Companies' end - whether the advice CCI has given is being implemented by the Companies; and details of that. These are things the customers should be made fully aware of.

In our News Summary published in Feb 2026, we had discussed in detail about the AI summit, where the Chairperson of CCI,  Ms. Ravneet Kaur had stressed upon the need for AI - but with transparency. She stressed upon "transparency, accountability and competition safeguards to prevent unfair conduct in digital markets". She also mentioned that AI definitely makes things faster and easier and can revolutionize healthcare, logistics, and farming, but it can also create an environment for dominance by the big players.

To follow up on that statement, she has already cautioned Companies to ensure that their AI tools are audited properly, before CCI does so. The competition compliance should be built into their technology.

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Related Article

Link:-https://economictimes.indiatimes.com/news/economy/policy/cci-issues-guidance-note-advising-enterprises-to-conduct-self-audits-on-ai-tools-to-avoid-competition-risks/articleshow/129606636.cms?from=mdr