Consumer protection commission highlights risks of AI for consumers, competition in Zambia

The Competition and Consumer Protection Commission (CCPC) has expressed concern over the use of Artificial Intelligence (AI), warning that it could lead to privacy breaches, algorithmic bias, fraud, impersonation, and failures in safety and reliability.

CCPC Senior Public Relations Officer, Florence Zaza, highlighted additional risks including market concentration in foundational AI models, algorithmic collusion, tacit coordination, abuse of dominance, and ecosystem lock-ins.

She made the remarks in a statement issued in Lusaka on Friday to mark World Competition Day (WCD), observed under the theme: “Artificial Intelligence (AI), Consumers and Competition Policy.”

Zaza explained that the theme focused on the emerging and complex risks associated with advancing technologies.

“AI is redesigning the methods of distributing goods and services and bringing new opportunities for consumers and businesses in Zambia. However, as AI becomes more powerful and common, it also creates new risks in how companies compete,” she said.

She added that these risks could harm consumers in several ways, such as prices rising in a coordinated manner, companies bundling products together, limiting choice, and reducing market variety.

“Consumers may end up paying more, having fewer choices, and getting less value. Simply put, Artificial intelligence is when computers are taught to think and make decisions like people,” Zaza said.

While AI can improve quality of life, Zaza warned that it could also reduce consumer welfare if not properly regulated.

She noted that these harms were typically addressed through a combination of consumer protection laws, sectoral regulations, and emerging AI-specific frameworks.

“For example, algorithms may ‘quietly agree’ on prices, or companies may use their dominant position to lock consumers into one ecosystem,” Zaza said.

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