By Supantha Mukherjee

STOCKHOLM, June 3 (Reuters) - Microsoft ( MSFT ) has not

seen significant use of artificial intelligence in the European

Parliamentary elections for creating disinformation campaigns,

the company's president told Reuters in an interview.

Brad Smith was in Stockholm to announce Microsoft's ( MSFT ) plan to

invest 33.7 billion Swedish crowns ($3.21 billion) to expand its

cloud and artificial intelligence infrastructure in Sweden over

a two-year period.

"We have to recognise the risks that AI can create in the

context of creating abusive content and one form of abusive

content would be AI generated deep fakes," Smith said.

AI and AI-generated fakes, or deepfakes, are being

increasingly used in elections elsewhere in the world, including

in India, the United States, Pakistan and Indonesia.

In India, deepfake videos went viral of two of India's

A-lister Bollywood actors criticising Prime Minister Narendra

Modi and asking people to vote for the opposition Congress party

in the country's general election.

Last month the European Union's disinformation-busting team

debunked a Russian-language video on Google-owned YouTube that

said citizens were fleeing dictatorship in EU member Poland and

seeking refuge in Belarus, a close ally of Moscow.

The European Parliament election will be held on June 6-9 as

the bloc's landmark rules on AI will enter into this month

setting a potential global benchmark for a technology used in

business and everyday life.

Microsoft ( MSFT ) has been training candidates for the European

Parliament to monitor the situation, Smith said.

"We have not seen an energetic effort to try to exploit

these elections," Smith said. "They are not over yet, so we

should not declare victory."

"We are just seeing the Russians focused on the Olympics,"

Smith said, adding that Microsoft ( MSFT ) will issue a report on the

topic later on Monday.

The International Olympic Committee has banned the Russian

Olympic Committee in October for recognising regional Olympic

councils for Russian-occupied regions of Ukraine - Luhansk,

Donetsk, Kherson and Zaporizhzhia.