Good morning. The boom in artificial-intelligence tools—ChatGPT is said to have reached 100 million users faster than any previous consumer app—is prompting regulators globally to consider curbs on the fast-evolving technology.

The Biden administration has begun examining whether checks need to be placed on AI tools like ChatGPT, amid growing concerns that the technology could be used to discriminate or spread harmful information.

• Looking for public input: In a first step toward potential regulation, the Commerce Department on Tuesday put out a formal public request for comment on what it called accountability measures, including whether potentially risky new AI models should go through a certification process before they are released.
   
• Informing policy: The comments, which will be accepted over the next 60 days, will be used to help formulate advice to U.S. policy makers about how to approach AI, said Alan Davidson, who leads the National Telecommunications and Information Administration, the Commerce Department agency that put out the request for comment. He added that his agency’s legal mandate involves advising the president on tech policy, rather than writing or enforcing regulations.
   
• Chinese concerns over AI grow: Meanwhile, China’s top internet regulator on Tuesday proposed strict controls that would, if adopted, obligate Chinese AI companies to ensure their services don’t generate content that could disrupt social order or subvert state power. The Cyberspace Administration of China will require companies to go through a government security review before providing such services and make companies responsible for the content their AI services generate, according to a draft of the rules.

The WSJ Risk & Compliance Forum on May 9 will feature speakers including Assistant Attorney General Kenneth Polite Jr., Assistant Secretary for Export Enforcement Matthew Axelrod, Elizabeth Atlee, chief ethics & compliance officer at CBRE, and Sidney Majalya, chief risk officer at Binance.US. You can register here.

South Korea fines Google $32 million for squeezing out local rival.

South Korea fined Alphabet Inc.’s Google the equivalent of about $32 million for abusing its global market dominance to thwart a local rival, in the latest regulatory challenge to the U.S. technology giant’s control over the mobile app ecosystem.

Google’s tactics to block the growth of rival app marketplace One Store Co. amounted to anticompetitive practices, South Korea’s Fair Trade Commission said Tuesday. Game companies were induced to release their apps exclusively onto the Google Play store in exchange for favorable promotion on the platform and support for launching their products overseas, the regulator said.

U.K regulator targets greenwashing with techsprint effort.

The U.K.’s Financial Conduct Authority will put greenwashing in its crosshairs, saying Tuesday that it will bring together 13 regulators world-wide to tackle risks associated with the practice.

Starting June 5, the FCA and other regulators will join with firms in a push to develop tools to take on financial-sector greenwashing, in which companies overstate their sustainability credentials to try to win business. The push, which the regulator is calling a TechSprint, is open to U.K. firms, and results are expected in September.

• A federal jury convicted three former executives of the once-highflying startup Outcome Health on several charges that they ran a billion-dollar scheme that defrauded customers.

Fed official: ‘We need to be cautious’ on raising rates after bank failures.

Potential fault lines surfaced on Tuesday over whether the Federal Reserve should proceed with interest rate increases next month as it studies the fallout from banking-sector stresses triggered by the collapse of two midsize banks last month.

Proceed with care. Chicago Fed President Austan Goolsbee said the central bank should proceed cautiously with any additional rate rises as it assesses after-effects of the bank failures during a speech Tuesday. “At moments like this of financial stress, the right monetary approach calls for prudence and patience,” he said in a speech at the Economic Club of Chicago.

• Collapse of SVB, Signature Bank Tests FDIC’s Executive Reserve Corps
• Bank Volatility to Cut U.S. Economic Growth, IMF Says

• Global economic growth is cooling while facing risks from the volatile banking sector, high inflation and climbing interest rates, the International Monetary Fund said Tuesday.
   
• Ukraine’s army said it repelled attacks by Russian forces in the east of the country as officials in Kyiv sought to play down purported U.S. intelligence leaks that could compromise a planned offensive.

New spyware firm said to have helped hack iPhones around the globe.

Hacking tools sold by a little-known Israeli vendor have been used to break into the iPhones of journalists and political opposition figures by silently exploiting Apple Inc.’s iPhone software, cybersecurity researchers said.

The intrusions are linked to QuaDream Ltd., which markets spyware under the name “Reign,” according to new research published Tuesday by Citizen Lab, a research group at the University of Toronto, and Microsoft Corp.

• Nearly two weeks after Russian security agents picked up Evan Gershkovich at a restaurant during a reporting trip, Moscow still hasn’t granted U.S. Embassy officials permission to visit The Wall Street Journal reporter in detention.
   
• ​Ernst & Young has axed its plan for a split of its auditing and consulting arms.
   
• The federal judge who oversaw the criminal-fraud trial of Theranos Inc. founder Elizabeth Holmes denied her request to stay out of prison while she appeals her guilty verdict.
   
• Hungarian Prime Minister Viktor Orban named the U.S. as one of the top three adversaries for his Fidesz Party, according to a purportedly leaked Central Intelligence Agency assessment.
   
• Manhattan District Attorney Alvin Bragg on Tuesday filed a lawsuit against the U.S. House Judiciary Committee and its GOP chairman, Rep. Jim Jordan, alleging Republican lawmakers were illegitimately interfering with his prosecution of former President Donald Trump.