South korea: South Korea will conduct an investigation into artificial intelligence (AI) service providers to address potential antitrust and consumer rights issues in the fast-growing industry, the fair trade watchdog said Thursday.

According to Yonhap News Agency, the move comes amid growing concerns over limited competition in the sector, which is dominated by a handful of companies, as well as potential consumer harm caused by fabricated advertisements generated using AI tools, as stated by the Fair Trade Commission (FTC).

"Amid the rapid advancement of AI technologies, such services are now capable of performing a wider range of tasks than before. They are being integrated into smartphones, automobiles, web browsers, and social media platforms, allowing users to access AI services more easily," the FTC said.

The FTC declined to comment on which platforms are included in the scope of the investigation, though industry observers believe popular models, such as ChatGPT and Gemini, will likely be checked.

The watchdog said it will examine 29 AI service developers and 17 companies offering products equipped with AI systems. It will also conduct a consumer survey to analyze usage patterns and perceptions of AI services.

The government plans to issue a policy report by the end of this year outlining its direction for addressing fair trade issues in the AI industry.