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Microsoft risks billions in fines as EU investigates its generative AI disclosures


Reluctance to expose Bing's AI problems may lead to billions of lost dollars.

The fines would be processed under requirements for Very Large Online Search Engines (VLOSEs) within the EU's Digital Services Act (DSA), and levy up to one percent of Microsoft's global annual turnover against the company. "The request for information is based on the suspicion that Bing may have breached the DSA for risks linked to generative AI, such as so-called 'hallucinations', the viral dissemination of deepfakes, as well as the automated manipulation of services that can mislead voters," the commission wrote. Meanwhile, the bloc is also utilizing the DSA to probe social media companies, as leaders open several investigations into child safety and emotional wellbeing across apps like TikTok, Facebook, and Instagram.

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