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Microsoft Faces Potential EU Fines Over Risks of Generative AI Tools

Microsoft May Face EU Scrutiny Over Risks Posed by Generative AI Tools

Microsoft is under scrutiny from the European Union (EU) for failing to provide information on the potential risks posed by its generative AI tools. The EU has given the tech company until May 27 to present the commission with documents outlining the potential harm that could arise from Bing’s generative AI features, such as Copilot and Image Creator by Designer. The concern is that these tools could pose a threat to civic discourse and electoral processes.

The fines for non-compliance would be imposed under the requirements for Very Large Online Search Engines (VLOSEs) within the EU’s Digital Services Act (DSA). These fines could amount to up to one percent of Microsoft’s global annual turnover. The commission has stated that the request for information is based on the suspicion that Bing may have breached the DSA by not addressing risks linked to generative AI, including the viral dissemination of deepfakes and automated manipulation of services that can mislead voters.

Generative AI is a risk that the Commission has identified in its guidelines on the integrity of electoral processes, particularly with the upcoming elections to the European Parliament in June. The EU is taking this matter seriously and wants to ensure that tech companies like Microsoft are transparent about the potential harm their AI tools can cause.

This is not the first time that Microsoft has faced scrutiny from the EU. In March, the European Union approved the AI Act, a landmark regulation that establishes oversight and enforcement procedures for AI technology deemed “high risk.” The law also bans certain risky AI applications, including emotion recognition, predictive policing, and AI that manipulates human behavior or exploits people’s vulnerabilities.

The EU is also utilizing the DSA to investigate social media companies, including TikTok, Facebook, and Instagram, for issues related to child safety and emotional wellbeing. This shows that the EU is taking a proactive approach to regulating and monitoring AI technology and its impact on society.

If Microsoft fails to provide the requested information, the commission has the power to impose penalties of up to 5 percent of the company’s average daily income or worldwide annual turnover. This highlights the seriousness of the situation and the importance of companies like Microsoft complying with regulations and being accountable for the potential risks associated with their AI tools.

In conclusion, the EU’s scrutiny of Microsoft’s generative AI tools is part of a broader effort to regulate and monitor AI technology in order to protect civic discourse, electoral processes, and the well-being of users. This case serves as a reminder that tech companies need to be transparent and responsible when developing and deploying AI tools, as they can have significant societal implications. The EU’s actions demonstrate the importance of regulations like the AI Act and the DSA in ensuring that AI technology is used ethically and responsibly.

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