EU Threatens Microsoft with Possible Multi-Billion Dollar Fine for Failure to Disclose GenAI Risk Information

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– The EU warned Microsoft of potential fines under the Digital Services Act for failing to provide information about generative AI tools
– The missing information related to Microsoft’s Bing search engine AI features, with concerns about risks to civic discourse and electoral processes
– Microsoft has until May 27 to provide the missing data or face a 1% fine, with potential additional penalties if the information is not provided by then.

The European Union has warned Microsoft that it could face fines up to 1% of its global annual turnover under the Digital Services Act (DSA) for failing to respond to a request for information related to generative AI tools. The EU had asked Microsoft for information about systemic risks posed by these tools in March, and the Commission has given Microsoft until May 27 to supply the requested data or face enforcement action, with fines potentially totaling up to billions of dollars.

The missing information pertains to risks associated with Bing’s generative AI features, including the AI assistant “Copilot in Bing” and the image generation tool “Image Creator by Designer.” The EU is concerned about the potential risks these tools may pose to civic discourse and electoral processes. Bing was designated as a “very large online search engine” under the DSA in April 2023, subjecting it to additional obligations related to mitigating systemic risks like disinformation.

The use of generative AI technologies by tech giants, despite potential flaws such as fabricating information or producing racially biased output, has raised concerns about the impact on civic discourse and electoral processes. The EU is focusing on AI-fueled political disinformation ahead of the upcoming elections to the European Parliament in June. Microsoft has stated its commitment to digital safety and compliance with the DSA, emphasizing collaboration with regulators and industry peers to address potential risks and safeguard users during elections.

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