On 4 May 2023, the UK Competition and Markets Authority (“CMA”) announced it is launching a review into AI foundation models and their potential implications for the UK competition and consumer protection regime. The CMA’s review is part of the UK’s wider approach to AI regulation which will require existing regulators to take responsibility for promoting and overseeing responsible AI within their sectors (for further information on the UK Government’s strategy, including its recent AI White Paper, see our blog post here). The UK Information Commissioner’s Office (“ICO”) has also recently published guidance for businesses on best practices for data protection-compliant AI (see our post here for more details).

The CMA’s focus is on foundation models – a type of AI model trained on large amounts of data that can be adapted to a wide range of different tasks and services such as chatbots and image generators – and how their use could evolve in the future. The review will focus on three main themes:

  • Competition and barriers to entry in the development of foundation models;
  • The impact foundation models may have on competition in other markets; and
  • Potential risks to consumers arising from the use of foundation models in products and services.

As part of its evidence gathering efforts, the CMA will issue “short information requests” to key players including “industry labs developing foundation models, developers… leading technology firms” and others (see more here). 

The CMA is welcoming submissions from stakeholders until 2 June and expects to publish a report on its findings in September. Potential outcomes from this review could include recommendations and guidance from the CMA on the competition and consumer protection principles that can best guide the ongoing development of foundation models. 


Covington regularly advises the world’s top technology companies on their most challenging regulatory, compliance, and public policy issues in the UK, EU and other major markets. We are monitoring developments in AI policy and regulation very closely and will be updating this site regularly – please watch this space for further updates.

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Photo of Marianna Drake Marianna Drake

Marianna Drake counsels leading multinational companies on some of their most complex regulatory, policy and compliance-related issues, including data privacy and AI regulation. She focuses her practice on compliance with UK, EU and global privacy frameworks, and new policy proposals and regulations relating…

Marianna Drake counsels leading multinational companies on some of their most complex regulatory, policy and compliance-related issues, including data privacy and AI regulation. She focuses her practice on compliance with UK, EU and global privacy frameworks, and new policy proposals and regulations relating to AI and data. She also advises clients on matters relating to children’s privacy, online safety and consumer protection and product safety laws.

Her practice includes defending organizations in cross-border, contentious investigations and regulatory enforcement in the UK and EU Member States. Marianna also routinely partners with clients on the design of new products and services, drafting and negotiating privacy terms, developing privacy notices and consent forms, and helping clients design governance programs for the development and deployment of AI technologies.

Marianna’s pro bono work includes providing data protection advice to UK-based human rights charities, and supporting a non-profit organization in conducting legal research for strategic litigation.

Photo of Marty Hansen Marty Hansen

Martin Hansen has represented some of the world’s leading information technology, telecommunications, and pharmaceutical companies on a broad range of cutting edge international trade, intellectual property, and competition issues. Martin has extensive experience in advising clients on matters arising under the World Trade…

Martin Hansen has represented some of the world’s leading information technology, telecommunications, and pharmaceutical companies on a broad range of cutting edge international trade, intellectual property, and competition issues. Martin has extensive experience in advising clients on matters arising under the World Trade Organization agreements, treaties administered by the World Intellectual Property Organization, bilateral and regional free trade agreements, and other trade agreements.

Drawing on ten years of experience in Covington’s London and DC offices his practice focuses on helping innovative companies solve challenges on intellectual property and trade matters before U.S. courts, the U.S. government, and foreign governments and tribunals. Martin also represents software companies and a leading IT trade association on electronic commerce, Internet security, and online liability issues.

Photo of Lisa Peets Lisa Peets

Lisa Peets leads the Technology Regulatory and Policy practice in the London office and is a member of the firm’s Management Committee. Lisa divides her time between London and Brussels, and her practice embraces regulatory counsel and legislative advocacy. In this context, she…

Lisa Peets leads the Technology Regulatory and Policy practice in the London office and is a member of the firm’s Management Committee. Lisa divides her time between London and Brussels, and her practice embraces regulatory counsel and legislative advocacy. In this context, she has worked closely with leading multinationals in a number of sectors, including many of the world’s best-known technology companies.

Lisa counsels clients on a range of EU law issues, including data protection and related regimes, copyright, e-commerce and consumer protection, and the rapidly expanding universe of EU rules applicable to existing and emerging technologies. Lisa also routinely advises clients in and outside of the technology sector on trade related matters, including EU trade controls rules.

According to the latest edition of Chambers UK (2022), “Lisa is able to make an incredibly quick legal assessment whereby she perfectly distils the essential matters from the less relevant elements.” “Lisa has subject matter expertise but is also able to think like a generalist and prioritise. She brings a strategic lens to matters.”