Microsoft Faces Billion-Dollar EU Fine Over Bing's AI-related Risks
Summary:
The European Union (EU) may impose a fine equivalent to 1% of Microsoft's yearly revenue if it fails to comply with an information request by May 27, relating to the company's Bing search engine and its linked artificial intelligence services. The request, made under the EU's Digital Services Act, centres on possible AI-generated risks. Failure to provide the requested information could result in a financial penalty for Microsoft that could exceed $2 billion.
The European Union could penalize Microsoft with a fine amounting to 1% of its yearly income if the tech giant does not comply with an information request by the end of May. The request is related to the EU's Digital Services Act and is centered around potential risks from Microsoft's Bing search engine and its attached artificial intelligence elements. The notice was sent out by the EU Commission on X.com, demanding Microsoft to submit details on any possible dangers posed by Bing's AI, such as artificial-generated content misleading users.
The post, dated May 17, has triggered questions around Bing's risks relating to AI-generated issues, including 'hallucinations', deepfakes, and automated manipulation that could potentially deceive voters. The source of this post was the EU Commission's official blog entry titled "Daily News". It stated that the original request was issued on May 14, asking about specific risks associated with Bing's AI functionalities, including "Copilot in Bing" and "Image Creator by Designer."
The bulletin proceeded to inform that the deadline for Microsoft to submit the demanded information is May 27. The warning comes with a disclaimer that the Commission has power to levy fines up to 1% of the entity's yearly earnings and recurring penalties up to 5% of the company's daily average earnings if the EU's demand is not met within the given time frame. A 1% revenue fine might seem insignificant; however, for Microsoft it could exceed $2 billion given its self-reported earnings for 2023 were $211 billion. Assuming the existing market trend persists, Microsoft could surpass that in 2024, translating into a minimum fine of about $2.1 billion if it is charged at all.
It is important to note that as of now, no such fines have been charged, and Microsoft has not been declared guilty of infringing any EU rules specifically related to this directive. Rather, it seems to be a reminder made available to the public, indicating that the corporation has been served with a request for more information which carries penalties if disregarded.
Cointelegraph attempted to get a comment from Microsoft but did not get a straightaway reply. Related: 'Godfather of AI' suggests UK government initiate UBI.
Published At
5/18/2024 11:01:32 PM
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