The Organisation for Economic Co-operation and Development has published a microdata study finding mixed evidence on artificial intelligence and competition. Non-generative AI adoption was not associated with systematic increases in market power in France and Portugal over 2011-2022, while generative AI may create opportunities for smaller and younger firms but confer greater benefits on businesses with stronger skills, productivity and complementary assets. Concentration in AI-related patenting was positively correlated with market concentration, and AI patent holders recorded faster markup growth mainly in information and communications technology sectors where AI is an output. The start-up ecosystem remained dynamic and attracted substantial venture capital. Generative AI start-ups received about 130% more venture capital than otherwise similar non-AI start-ups and were about 21% more likely than the average start-up to be acquired, raising concerns that incumbent acquisitions could constrain future competition and innovation. The OECD called for continued monitoring of AI markets and acquisitions by large incumbents, alongside more granular data on firms’ AI use and development. It also highlighted access to computing power and skilled labor as important for lowering entry barriers.
OECD2026-07-30
Organisation for Economic Co-operation and Development finds dynamic AI markets alongside emerging concentration risks
The OECD found no systematic link between non-generative AI adoption and increased market power in France and Portugal, but identified emerging concentration risks in AI innovation. Generative AI may help smaller firms compete, although firms with stronger capabilities appear better placed to benefit. AI start-ups attract substantial venture capital but are frequently acquired by incumbents, supporting continued market monitoring.