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Thursday, September 19, 2024

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Elon Musk’s X May Face Sanctions for Training Grok on EU Data

Grok Earlier this week, the EU’s lead privacy regulator concluded a court proceeding regarding how X, formerly known as Twitter, processed user data to train its Grok AI chatbot. However, the platform still faces several complaints under the General Data Protection Regulation (GDPR). The Irish Data Protection Commission (DPC) confirmed it will examine these complaints to determine if X violated GDPR provisions.

DPC’s Examination of X’s Data Handling Grok 

The DPC is investigating whether X’s use of user data from May to August 2024 to train Grok AI without consent violates GDPR. X has committed to suspending its use of Europeans’ data for AI training, but the DPC is examining if further action is necessary.

Potential Penalties Under GDPR

GDPR violations can lead to fines up to 4% of global revenue, which could significantly impact X given its recent financial struggles. While X has suspended the data processing for Grok, AI models already trained on European data remain intact. This has sparked concerns about companies potentially circumventing privacy regulations.

Grok Legal and Regulatory Challenges for AI

However, the regulator has not yet acted on concerns that AI models trained on this data could pose ongoing risks. Enforcement in this area is complex, with regulators still determining how GDPR applies to generative AI tools.

Risks of AI Misuse Grok 

Generative AI tools, including Musk’s irreverent Grok AI, have the potential to produce harmful or inaccurate content, raising concerns about the consequences for users whose data was used without consent. The regulatory landscape for such AI tools remains uncertain, and authorities will need to address these concerns as AI technology evolves.

Departure of X’s Head of Global Affairs

In a related development, X’s head of global affairs, Nick Pickles, resigned from his role after a decade at the company. His departure adds to the challenges X faces, including legal issues in Brazil, disinformation concerns in the U.K., and ongoing investigations by the EU under its Digital Services Act.

Political and Regulatory Pressures Grok 

X is also dealing with political backlash, particularly in the U.K., where it is criticized for spreading disinformation linked to recent riots. Additionally, the company is under investigation by the EU’s content moderation framework, further compounding its regulatory challenges.

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