Microsoft is reportedly facing questions from the European Commission about the GenAI tools in its Bing search engine. The Commission wants to know more about features named "Copilot in Bing" and "Image Creator by Designer", and concerns have been raised about possible breaches of the EU's Digital Services Act (DSA).

Microsoft must respond to the Commission's request by May 27. If it fails to do so, the company could face fines of up to 1% of its annual income or turnover. Microsoft reaffirms its commitment to digital safety and compliance with the DSA and indicates its cooperation with the Commission's inquiries so far.

Analyst QuickTake: The Commission's concerns relate to potential risks associated with GenAI, including hallucinations, the spread of deepfakes, and AI-manipulated misinformation, which could potentially deceive voters. This comes as the DSA focuses on maintaining the integrity of electoral processes, particularly with the forthcoming European Parliament elections.