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.