Elon Musk, X Sued by Nine EU Countries Over AI Data Claims

Nine European Union countries have filed a lawsuit against Elon Musk and his platform, X, for allegedly using user data without consent to train its generative AI, Grok, in violation of the General Data Protection Regulation (GDPR).

The Irish Data Protection Commission (DPC),  leading the investigation, represents Austria, Belgium, Spain, France, Greece, Italy, the Netherlands, and Poland. They claim X processed personal data without valid consent from May 7 to Aug. 1, 2024.

Under the GDPR, tech companies must obtain a legal basis before processing users' personal data. The DCP alleges that X violated this requirement, impacting around 60 million EU users. Reports indicate that X did not meet the necessary legal standards for using this data in AI training. If found guilty, X could face fines up to 4% of its global annual revenue (US$136 million in 2023).

In response, X has introduced a new setting on its web platform that allows users to opt out of data processing starting in late July. However, prior to this update, users had no means to block the processing of their data.

Nyob, a user rights organization, has criticized X’s recent change, arguing that users cannot disable tracking settings if they are not informed about data collection. Despite Musk’s agreement to stop using European publications for Grok training, Nyob highlights ongoing issues with GDPR compliance, including the right to be forgotten and access to personal data.

"If only a small portion of the 60 million users had consented to AI training, X would have sufficient data for any new AI model. Yet, seeking permission does not seem to be their current practice" Noyb remarked to Milenio.

This lawsuit is part of a broader European Union effort to regulate AI. In early August, the European Union's AI Act, the world's first comprehensive AI regulation, took effect. It categorizes AI systems by risk level, imposes specific regulations for each category, and sets transparency requirements for generative AI, while promoting innovation through testing environments for small and medium-sized enterprises (SMEs) and startups.