Market Power in the Age of Artificial Intelligence: An Empirical Panel Analysis of Data Scale and Government Regulation in the United States Telecommunications Industry

Artificial intelligence is transforming the telecommunications industry by reshaping competition, operational efficiency, and market structure. This study investigates the effects of artificial intelligence investment, data accumulation, and computing capacity on market power in the United States telecommunications sector from 2000 to 2025. Using a panel data framework that integrates firm-level observations with macroeconomic and regulatory indicators, the analysis evaluates whether artificial intelligence-driven technological advantages contribute to increased market concentration. Market power is measured by the Herfindahl-Hirschman Index and firm-level pricing power, while artificial intelligence capability is reflected in investments in data infrastructure and computational resources. The findings reveal that greater investment in artificial intelligence, larger data assets, and enhanced computing capacity are associated with stronger market positions and greater concentration. However, regulatory oversight significantly moderates these effects by limiting the translation of technological advantages into persistent market dominance. The study contributes to the literature by demonstrating that artificial intelligence simultaneously promotes innovation, operational efficiency, and concentration pressures within telecommunications markets.