Competition watchdogs should investigate US tech giants “vexing” data monopolies, a House of Lords inquiry has said.

The Lords Artificial Intelligence committee called on the Competition and Markets Authority to launch a study of the sector after receiving complaints that the likes of Google and Facebook had too much control over global, digital data which is critical for academics and scientists developing artificial intelligence.

The government has estimated that AI could add an additional £630bn to the UK economy by 2035 and presents an opportunity to improve productivity and improve quality of life, particularly for its potential in aiding healthcare.

But the industry may struggle to take off if home-grown startups are unable to benefit from digital data needed to train smart algorithms. Several of the US tech giants, most of which are building their own AI, have been harvesting the personal information of Britons and its global customer base for several years, putting developers at a distinct advantage.

The committee said: “While we welcome the investments made by large overseas technology companies in the UK economy, and the benefits they bring, the increasing consolidation of power and influence by a select few risks damaging the continuation, and development, of the UK’s thriving home-grown AI startup sector.