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Microsoft Stock Dips on AI Chatbot Safety Fears
11 Dec
Summary
- State attorneys general warned tech firms about AI chatbot issues.
- Concerns involve AI's sycophantic outputs and child safety risks.
- Microsoft stock saw a nearly 3% decline following the letter.
Microsoft's stock price experienced a mild sell-off on Wednesday, with nearly a 3% drop, following a warning from state attorneys general regarding artificial intelligence chatbots. A bipartisan group of officials sent a letter to major tech companies, including Microsoft, highlighting concerns about AI outputs and child safety.
The letter detailed "sycophantic and delusional outputs" from generative AI software and "disturbing reports of AI interactions with children." The attorneys general demanded "much stronger child-safety and operational safeguards" and requested the ability for independent auditing by state and federal authorities.
This development occurs amidst ongoing discussions about AI oversight, with the federal government seeking to limit state-level regulations. Historically, Microsoft has successfully managed previous regulatory challenges, suggesting it will likely find a way to comply or compromise without significant business harm.
