This paper examines the transformative potential and challenges of foundation models (FMs)
in artificial intelligence (AI) and their implications for competition and consumer protection.
It focuses on the pivotal role of the UK's Competition and Markets Authority (CMA) in
overseeing AI market development. This paper explores the balance between fostering
innovation and ensuring robust competition by analyzing the CMA’s reports on AI Foundation
Models from September 2023 and April 2024. It highlights the need for a comprehensive
regulatory approach to maximize societal and economic benefits while mitigating risks
associated with AI development.