BRUSSELS (dpa-AFX) - The European Commission on Friday gave Microsoft a
legally binding deadline of May 27 to supply documents concerning the
use of generative artificial intelligence (AI) in its Bing search
engine.

The order concerns two features: 'Copilot in Bing,' a multipurpose
system that can create text and images based on prompts from the
user, and 'Image Creator by Designer,' an image generator.

The commission says it suspects AI-generated false information -
known as 'hallucinations' - from these systems, as well as
AI-generated 'deepfakes' and voter manipulation, may violate the
European Union's Digital Services Act (DSA).

The DSA is a broad online content law that among other things
requires very large platforms like Microsoft to manage a wide array
of different risks related to their services.

Generative AI systems allow users to create content using
plain-language prompts. For example, one can ask a system to answer
questions; write an essay, story, or poem; or generate images or
sound.

'Hallucinations' occur when a user asks a generative AI system a
question and gets an incorrect answer. Deepfakes involve deliberately
using AI to manipulate an image or video of a real person to
misrepresent them - for example, to put words in their mouth.

If Microsoft fails to provide the requested documents in time, the
DSA allows the commission to fine the company up to 1% of its global
yearly revenue, plus daily fines of up to 5% of its daily income.

Should the commission ultimately conclude that Microsoft has failed
to mitigate risks outlined in the DSA, the fines could run to 6% of
global annual revenue.

Microsoft could not immediately be reached for comment.


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