Europe cracks down on X’s data practices for AI training

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Europe cracks down on X’s data practices for AI training
Europe is zeroing in on big tech once more, and it’s not just about the Digital Markets Act, which is designed to create fairer conditions in the digital space and is the reason Apple Intelligence isn’t launching in the EU. This time, European lawmakers are focusing on how X handles user data to train its AI chatbot, Grok.

X faces allegations of using EU user data to train Grok without consent


According to a recent report, Ireland’s Data Protection Commission (DPC) has taken legal action against Twitter International, X's Irish division. The DPC is raising concerns about how the personal data of millions of European users on X is being handled.

The DPC alleges that Twitter International is falling short of its GDPR obligations in how it uses Grok, the AI chatbot. GDPR is the EU regulation designed to protect information privacy and data security.

The data protection watchdog is particularly concerned that European users' data might be used to train the upcoming version of Grok, which Musk has said is set to launch sometime this month.

In July, X introduced a change that automatically opted all users into a setting allowing their public posts to be used for training its AI chatbot. While the DPC recognizes that X provided an opt-out option, it isn’t satisfied with that. The agency argues that X didn't adequately inform users about how their data would be used for Grok's training.

For a company to legally process user data, it typically needs explicit consent from the user or a legitimate reason related to fulfilling a contract. While there are other valid reasons for data processing, the DPC’s complaint suggests that it doesn’t think X has a solid legal foundation for its current practices.



Moreover, Twitter International has apparently ignored requests from the DPC to halt the processing of users' data and postpone the release of the new Grok version. As a result, the DPC is moving forward with its complaint, aiming to get the court to either suspend or completely block the company from using X users' data for AI training. If the court finds that X has broken GDPR rules, the company could face a hefty fine of up to 4% of its annual global revenue.

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This isn't the first time EU regulators have raised eyebrows about AI training practices. Back in June, Meta, the parent company of Facebook and Instagram, hit the brakes on its plans to launch its AI models in Europe. This pause came after facing similar GDPR complaints and mounting pressure from regulators, including the DPC. 

I think regulatory pressure might be the only way to get big tech companies to take user privacy seriously. However, with Elon Musk's track record of being less than cooperative with privacy regulators, it seems like this case might be making headlines for a while.
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