European Regulators Press Big Tech on Risks of Generative AI

European regulators are intensifying their scrutiny of Big Tech firms’ handling of generative AI amid growing concerns over potential risks posed by AI-generated content.

European regulators are intensifying their scrutiny of Big Tech firms’ handling of generative artificial intelligence (AI) amid growing concerns over potential risks posed by AI-generated content.

The European Commission (EC) has taken proactive steps by sending requests under the Digital Services Act (DSA) to major tech players including Microsoft, Alphabet, Meta, X, Snapchat, and TikTok. These requests aim to gather information on the mitigation measures implemented by these companies to address risks associated with generative AI, as outlined in a press release issued on Thursday, March 14.

The EC’s inquiries specifically target risks such as the proliferation of false information through so-called ‘hallucinations’ generated by AI, the widespread dissemination of deepfakes, and the automated manipulation of services with the potential to mislead voters. Companies have been given until April 5 to respond to questions related to election integrity, while the deadline for addressing remaining queries is set for April 26.

The commission’s actions reflect a broader global trend of regulatory bodies tightening oversight on the use of AI to perpetrate various forms of fraud. In the United States, the Federal Trade Commission (FTC) recently proposed new regulations aimed at curbing impersonation fraud facilitated by AI. FTC Chair Lina M. Khan emphasized the urgency of addressing the rising threat of AI-driven scams, particularly those involving voice cloning and sophisticated impersonation techniques.

Coinciding with the EC’s move, formal proceedings have been initiated to investigate whether Alibaba’s AliExpress has violated DSA requirements. The examination focuses on AliExpress’s management of risks, content moderation practices, handling of complaints, transparency in advertising, traceability of traders, and accessibility of data for researchers.

Margrethe Vestager, the EU’s competition watchdog, underscored the importance of consumer protection, especially for minors, within the framework of the Digital Services Act. Vestager emphasized that AliExpress must adhere to its obligations under the DSA to mitigate systemic risks on its platform and ensure safety for users. The Commission’s assessment will scrutinize the adequacy of AliExpress’s measures and their alignment with regulatory standards.

In response to inquiries, AliExpress affirmed its commitment to compliance with applicable regulations and cooperation with relevant authorities. The company reiterated its dedication to maintaining a secure and compliant marketplace for consumers, underscoring its ongoing efforts to meet the requirements stipulated in the Digital Services Act.

The European Commission’s proactive stance reflects a growing recognition of the potential risks associated with generative AI and the need for robust regulatory frameworks to address emerging challenges in the digital landscape. By engaging with major tech companies and scrutinizing their practices, European regulators aim to foster greater transparency, accountability, and consumer protection in the rapidly evolving realm of AI-driven technologies.