1、Issue BriefMay 2025Promoting AI Innovation Through CompetitionA Guide to Managing Market PowerAuthorJack CorriganPromoting AI Innovation Through CompetitionA Guide to Managing Market PowerAuthorJack CorriganCenter for Security and Emerging Technology|1 Executive Summary In the years ahead,increasing

2、ly advanced artificial intelligence systems are expected to reshape the global economic and national security landscape.Maintaining long-term U.S.leadership in AI will require policymakers to foster a diversified,contestable,and competitive market for commercial AI systems.Competitive markets are a

3、key driver of innovation,incentivizing incumbent firms to continuously improve their offerings and encouraging startups to bring disruptive products to the market.In addition to galvanizing innovation,promoting competition among AI developers would prevent the U.S.AI industry from becoming a digital

4、 monoculture and make the country more resilient against economic disruptions,technological surprises,and other national security risks.As it stands today,however,the commercial AI industry seems poised to become less competitive over time.The organization of the AI supply chain,the economics of AI

5、development,and the industrys prevailing“bigger-is-better”paradigm give incumbent technology companies a clear advantage in the production of AI systems.These firms have both the means and motivation to use their market power to stifle competition in the AI sector.By leveraging their control over co

6、mputing infrastructure,training data,foundation models,and product distribution channels,incumbents can effectively pick winners and losers in the AI market,potentially preventing disruptive upstarts and their inventions from reaching the market.If left unchecked,this behavior could undermine the lo