The European Union has issued a stern warning to Microsoft, cautioning the tech giant that it could face fines of up to 1% of its global annual turnover under the Digital Services Act (DSA). This comes after Microsoft allegedly failed to respond adequately to a request for information (RFI) concerning its generative AI tools.
In March, the EU requested information from Microsoft and other tech giants regarding the systemic risks associated with generative AI tools. However, the Commission noted that Microsoft failed to provide some of the requested documents. While the initial press release claimed non-receipt of a response from Microsoft, a subsequent update reframed the issue as an escalation of enforcement action in response to the initial request.
Potential Penalties and Enforcement Measures
Microsoft has been given until May 27 to furnish the requested data, failing which it risks facing fines of up to 1% of its global annual revenue. Under the DSA, fines for incorrect, incomplete, or misleading information provided in response to an RFI can be substantial. Additionally, failure to comply may result in periodic penalties amounting to 5% of daily income or worldwide annual turnover.
The EU has expressed specific concerns regarding the risks posed by Bing’s generative AI features, including the AI assistant “Copilot in Bing” and the image generation tool “Image Creator by Designer.” Of particular concern are potential risks to civic discourse and electoral processes.
The DSA places obligations on larger platforms to mitigate disinformation, placing generative AI technologies under scrutiny. Despite their potential, AI-powered image generation tools have been associated with biased or harmful output, such as deepfakes.
Microsoft’s Response and Commitment
In response to the EU’s warning, Microsoft has emphasized its commitment to creating safe online experiences and collaborating with regulators. The company asserts its cooperation with the European Commission’s request for information and pledges to share more about its approach to digital safety and compliance with the DSA. Microsoft also highlights its efforts to prepare its tools for the upcoming 2024 elections and collaborate with industry peers to combat deceptive AI use.
The EU’s warning to Microsoft underscores the increasing scrutiny and regulation of AI technologies, particularly in the context of online governance and disinformation mitigation. As the digital landscape continues to evolve, tech companies like Microsoft face heightened accountability and responsibility for the societal impacts of their AI tools.
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