EU seeks information from Microsoft on generative AI risks in Bing

The European Union (EU) recently published a press release seeking clarity from Microsoft under the Digital Services Act regarding AI risks on Bing. The deadline to respond to the request for information is May 27.

The EU asks Microsoft to provide information on generative AI risks in Bing

It is worth noting that the EU had earlier requested information from Microsoft on May 14. However, the company failed to respond by that date. The EU, in its latest press release, mentions:

The Commission steps up its enforcement actions against Microsoft: after not having received an answer to its request for information from 14 March regarding specific risks stemming from Bing’s generative AI features, notably “Copilot in Bing” and “Image Creator by Designer”, the company now has until 27 May to provide the requested information to the Commission.

We compel Microsoft to provide information under the Digital Services Act on generative AI risks on Bing.

Bing may pose risks linked to generative AI, such as so-called ‘hallucinations’, deepfakes, as well as the automated manipulation of services that can mislead voters.#DSA

— European Commission (@EU_Commission) May 17, 2024

Failing to respond to the request by the deadline could draw a heavy fine

Now, the EU wants Microsoft to provide internal documents and data that the company didn’t share earlier. The Commission also warns Microsoft about imposing a fine of up to 1% of its total annual income or worldwide turnover if it fails to provide information by the deadline.

The same applies if Microsoft gives incorrect, incomplete, or misleading information in response to the latest request by the EU. If the EU’s request is not met by the deadline, there could be additional periodic penalties of up to 5% on Microsoft’s daily income or worldwide annual turnover.

A 1% fine on revenue might not sound big. But in this case, the fine amount could be well over $2 billion. Yes, you read that right. The estimation is based on Microsoft’s self-reported revenue of $211 billion from last year. If the revenue jumps in 2024, the fine amount maybe even more, who knows?

Well, this notice to seek information on generative AI risks in Bing is seemingly a request from the EU. However, Microsoft could face consequences if it ignores the EU’s request this time around as well.