EU Demands AI Risk Data From Microsoft, Threatens Fine
On 17 May, the European Commission directed Microsoft to provide information regarding risks stemming from the use of generative AI in Microsoft products, specifically “Copilot in Bing” and “Image Creator by Designer”. This is the second request made by the international body, following an initial notice sent on March 14. The tech giant now has until May 27 to respond, or face fines up to 1% of its annual global turnover.
In its initial request, the commission had asked for information on the risk assessments and mitigation measures linked to the impact of generative AI on “electoral processes, dissemination of illegal content, protection of fundamental rights, gender-based violence, protection of minors, mental well-being, protection of personal data, consumer protection and intellectual property.”
The recent request is made as the Commission is unsatisfied with Microsoft’s previous response and is asking Bing to provide internal documents and data that was not initially provided. The Commission suspects that Microsoft’s search engine may have violated the Digital Services Act (DSA) for “risks linked to generative AI, such as so-called ‘hallucinations’, the viral dissemination of deepfakes, as well as the automated manipulation of services that can mislead voters.”
Microsoft’s Bing is designated as a Very Large Online Search Engine under the DSA, article 34 and 35 of which require it to carry out and enact regular risk assessment and mitigation strategies. These systemic risks include possible dissemination of illegal content, negative effects on democracy, public security or gender-based violence. Generative AI was identified as one such possible risk by the commission in its guidelines on the integrity of electoral processes, especially in light of the upcoming European Parliament elections in June.
If Microsoft fails to respond within the deadline, the Commission may impose fines up to 1% of the provider’s total annual income or worldwide turnover and periodic penalties up to 5% of the provider’s average daily income or worldwide annual turnover. The Commission may also impose fines up to 1% of the provider’s total annual income or worldwide turnover for incorrect, incomplete, or misleading information in response to a request for information.
Similar concerns regarding AI were raised in the EU in March this year, when the European Parliament passed a landmark comprehensive legal framework which regulates AI systems based on their potentially harmful effects and risks to human life, democracy and fundamental rights.
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