The European Union has warned Microsoft that it could face a positive of as much as 1% of its global annual turnover under the bloc's online governance regime, the Digital Services Act (DSA), after the corporate responded to a request for information (RFI). had not responded focused on its generative AI tools.
Back in March, the EU asked Microsoft and various other tech giants for details about systemic risks posed by generative AI tools. On Friday Commission said Microsoft didn’t provide among the requested documents. However, an updated version of the Commission's press release adjusted the wording used and deleted an earlier claim that the EU had not received a response from Microsoft. The revised version states that the EU is stepping up enforcement measures “following an initial request for information”.
The commission gave Microsoft until May 27 to offer the requested data or risk enforcement. Fines under the DSA might be as much as 6% of worldwide annual turnover, nonetheless false, incomplete or misleading information provided in response to a proper request for information may end in a stand-alone positive of 1%. In Microsoft's case, that might add as much as a positive of as much as just a few billion dollars – the corporate reported revenue of $211.92 billion within the fiscal 12 months that ended June 30, 2023.
The systemic risk obligations of larger platforms under the DSA are overseen by the Commission itself, and this warning heads a spread of effective enforcement options that could possibly be much more costly for Microsoft than any reputational penalty it faces for failing to offer data upon request could receive.
The Commission said it lacked information on risks posed by search engine Bing's generative AI capabilities – specifically, the regulator highlighted the AI assistant “Copilot in Bing” and the image generation tool “Image Creator by Designer”.
The EU said it was particularly concerned about any risks the tools could pose to civic discourse and electoral processes.
The Commission has given Microsoft until May 27 to offer the missing information or face a positive of 1% of annual turnover. If the corporate doesn’t provide the information by then, the Commission also can impose “periodic penalties” of as much as 5% of its average day by day income or global annual turnover.
Bing was designated as a so-called “very large online search engine” (VLOSE) under the DSA back in April 2023, meaning it’s subject to an extra layer of obligations related to mitigating systemic risks comparable to disinformation.
The DSA's commitment to larger platforms to curb disinformation puts generative AI technologies at the middle. Tech giants have been on the forefront of embedding GenAI into their mainstream platforms, despite glaring flaws comparable to the tendency of huge language models (LLMs) to fabricate information while presenting it as fact.
AI-powered imaging tools have also been shown to supply racially biased or potentially harmful results, comparable to misleading deepfakes. Elections are coming up within the EU next month, drawing attention in Brussels to AI-powered political disinformation.
“The request for information is predicated on suspicion that Bing could have violated the DSA attributable to risks related to generative AI, comparable to so-called 'hallucinations', the viral spread of deepfakes, and the automated manipulation of services that may mislead voters.” “Wrote the commission in a press release.
“After the DSA designated services, including Bing, must conduct an appropriate risk assessment and take appropriate risk mitigation measures (Articles 34 and 35 of the DSA). Generative AI is one in every of the risks identified by the Commission in its report Guidelines on the integrity of the electoral processes, specifically for the upcoming European Parliament elections in June.”
Reached for comment, a Microsoft spokesperson sent a press release claiming that it’s “deeply committed to creating secure online experiences and dealing with regulators on this vital issue.”
“We have cooperated fully with the European Commission on the voluntary information request and remain committed to responding to their questions and sharing more about our approach to digital security and compliance with the DSA,” Microsoft also wrote, adding: “Across Through our diverse range of online services, we take measures to measure and mitigate potential risks. This includes various Actions to organize our tools for the 2024 elections and help protect voters, candidates, campaigns and election authorities. We will proceed to work with our industry colleagues on this Tech deal to combat the fraudulent use of AI within the 2024 elections.”
. CET,
