The European Union is sending a serious message to Microsoft regarding its technologies, particularly its Bing search engine and AI services. If the tech giant doesn't respond to inquiries regarding potential risks connected to Bing's AI capabilities by May 27th, it could face significant repercussions.
In Brief
The European Union is threatening Microsoft with a fine that could reach 1% of its annual sales in the region if the company does not reply to questions about the AI capabilities of Bing in a timely manner.
The EU is laying down a serious challenge to Microsoft, the powerhouse behind products like Windows and Office, over its Bing search engine and the generative AI that underpins its functions. Should Microsoft fail to answer the call for details regarding Bing's AI risks by May 27th, it may face hefty penalties. The EU has indicated that it may enforce penalties against Microsoft, possibly amounting to 1% of its revenue in the region. The warning originates from concerns flagged by the European Commission under the newly implemented Digital Services Act (DSA). As stated in a post on May 17th via X (formerly Twitter), the Commission is asking Microsoft to present insights regarding generative AI risks associated with Bing.
We insist that Microsoft comply with the conditions set by the Digital Services Act by providing detailed information about generative AI risks tied to Bing's functionalities.
This legislation took effect in November 2022, aiming to regulate digital platforms, including search engines and social media, by addressing challenges brought by AI and emerging technologies. Copilot in Bing ” and “ Image Creator by Designer Since then, major online platforms have been tasked with identifying and mitigating risks associated with their operations, particularly those involving AI technologies, in accordance with the DSA. Moreover, the European Commission has been granted powers to impose penalties on companies that fail to comply and can request clarifying information.
The European Digital Services Act
The Digital Services Act Given Microsoft's substantial operations in the EU, a fine equivalent to 1% of its yearly revenue could represent a significant financial burden.
For the fiscal year 2023, Microsoft reported a whopping $211 billion in revenue, a considerable portion of which comes from the European market.
If current market trends continue, Microsoft's profits for the fiscal year 2024 could soar to even greater heights. A 1% fine in this scenario could easily exceed $2 billion, making it a hefty penalty for any corporation, particularly for a financial juggernaut like Microsoft. Microsoft announced Although Microsoft has yet to officially respond to the specific inquiries from the EU regarding Bing's AI, the company has consistently highlighted its commitment to responsible development and deployment of AI technologies.
Brad Smith, Microsoft's President, would surpass $211 billion emphasizes the importance of thoughtful policies and democratic involvement in shaping AI regulations. He has articulated that such regulations should not only be effective but should also focus on the most significant risks posed by these technologies. Smith advocates that regulatory frameworks need to be outcome-based, ensuring that they achieve their intended objectives while remaining relevant amid rapid technological innovations.
Microsoft’s Position on AI Ethics
Microsoft has also established a dedicated team and framework to promote responsible AI, guided by principles of inclusiveness, accountability, safety, privacy, and transparency. Natasha Crampton, who serves as the Chief Responsible AI Officer,
underlines the need for integrating responsible AI practices throughout the entire lifecycle—from design to implementation. noted in a recent article The Bing AI Conundrum and Its Risks
Since launching its AI features, including innovations within Bing, Microsoft has attracted a great deal of both attention and criticism. These advanced language models and generative AI frameworks enable users to create text, code, and visual content in response to natural language prompts. has emphasised While there's tremendous potential for improvement in areas like efficiency, creativity, and user accessibility, there are also serious concerns regarding potential misuse, bias, and the spread of harmful or inaccurate information.
The EU’s specific worries regarding the possible risks associated with generative AI highlight vulnerabilities, especially concerning 'hallucinations'
and deepfakes. These algorithms can generate highly realistic yet entirely fabricated information, which could be exploited for malicious purposes such as fraud, manipulation, or interference in elections if adequate safeguards and oversight aren't put in place. Copilot and Image Creator Moreover, the EU's mention of automated service manipulation hints at fears that AI systems could exploit or distort online platforms, threatening their trustworthiness and integrity.
Striking a Balance: Ethical AI Innovation and Regulation in 2024
As AI technologies rapidly evolve, the need for responsible innovation and prudent regulation becomes increasingly crucial. The EU has proactively sought to address the potential risks associated with generative AI by demanding deeper insights from Microsoft under the framework of the Digital Services Act. Moving forward, Microsoft and other tech giants involved in AI will need to collaborate closely with lawmakers and regulators to strike the right balance between fostering innovation and preventing harm. Achieving this likely requires a combination of governmental oversight, adherence to industry best practices, and self-regulatory measures.
AI expert Gabriela Ramos
from UNESCO emphasized the critical importance of ethical considerations in this domain. She pointed out that we are on the brink of a transformation at an unprecedented pace, reminiscent of the revolutionary changes brought about by the printing press six centuries ago, with these versatile technologies reshaping our lifestyles, work dynamics, and social interactions. While Ramos acknowledged the myriad applications of AI, she also cautioned that without a strong ethical framework, it could inadvertently reinforce societal biases and discrimination, intensify divisions, and threaten fundamental freedoms.
Microsoft's current initiatives in responsible AI resonate with the EU's ambitions outlined in the Digital Services Act, positioning the company to navigate this regulatory landscape while continuing to innovate in the realm of generative AI, provided it actively engages with stakeholders and shows a genuine commitment to ethical AI practices. obtain information The scrutiny of Microsoft's Bing AI by the EU illustrates the growing global emphasis on AI governance and regulation. Even though the EU has taken the lead with its Digital Services Act and forthcoming AI regulations, other nations and international bodies are also grappling with the challenges posed by advanced AI systems.
Microsoft's president has asserted that AI needs 'a new era of legislation and regulation.'
As the Biden administration in the United States has initiated efforts to advance ethical AI development and usage, including proposing an AI Bill of Rights, they have underscored the importance of mitigating risks without losing sight of innovation and competitive edge.
The Organisation for Economic Cooperation and Development (OECD)
highlights critical issues concerning human oversight, accountability, transparency, and fairness. Additionally,
as part of its broader digital cooperation framework. As AI becomes more woven into the fabric of everyday life, ensuring its proper development and deployment will be essential for maintaining public trust, safeguarding fundamental rights, and unlocking the full potential of this groundbreaking technology. The National AI Advisory Committee , please remember that the content presented on this page is meant for informational purposes only and should not be considered legal, tax, investment, financial, or other professional advice. Always invest only what you can afford to lose and consult independent financial advisors if you have concerns. For further details, we recommend checking the terms and conditions in addition to the help and support sections provided by the issuer or advertiser. MetaversePost is dedicated to providing accurate, impartial reporting; however, market conditions may change without prior notice.
Victoria is an author focusing on a range of technology issues, including Web 3.0, AI, and cryptocurrencies. Her vast experience enables her to craft insightful pieces for a broad audience. has created guidelines for AI Shardeum Empowers Validators and Unveils Autoscaling Mainnet Roadmap. Bitcoin, Ethereum, Toncoin: Recap of Last Week’s Crypto Surge – Complete Update and Future Insights. April 2025: Top Blockchain Projects That Captured Attention.
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