GPTs and digital superintermediaries: dynamics, dilemmas, dangers of generative AI – a conceptual framework

The arms race in generative artificial intelligence and artificial intelligence has transformed digital markets, with artificial-intelligence-powered platforms projected to drive market growth to nearly $740 billion by 2030. However, scholarly understanding of how these technologies affect platform competition remains limited. This article explores how generative pre-trained transformers influence digital superintermediaries’ market power and examines whether generative artificial intelligence capabilities reinforce or challenge existing platform dominance. Using a conceptual literature analysis of platforms and artificial intelligence development patterns, the research uncovers a critical paradox: While generative pre-trained transformers represent revolutionary advancement, they create novel forms of artificial intelligence market concentration. The findings reveal how digital superintermediaries leverage artificial-intelligence-powered platforms through control over computational resources and data access, creating self-reinforcing cycles of artificial intelligence capability enhancement. This research demonstrates how artificial intelligence capabilities, particularly generative pre-trained transformers, create new mechanisms of market power consolidation, suggesting the need for innovative regulatory approaches that address the unique characteristics of generative artificial-intelligence-enhanced digital multisided platforms.