
Canada's privacy commissioner found X's AI tool Grok violated federal law by enabling non-consensual sexualized deepfakes. X must now submit quarterly audits and independent reports on safeguards.
Canada's privacy watchdog found that X (formerly Twitter) violated the country's federal private-sector privacy law when it launched an AI image generation tool that was used to create sexualized images of people without their consent. The Privacy Commissioner of Canada released a report Thursday summarizing the findings of a months-long investigation of Elon Musk's xAI and the social platform.
The investigation, opened in January, focused on xAI's Grok model. Users prompted the tool to generate non-consensual sexualized images of women and sometimes children, including child sexual abuse material. The commissioner found the company had not obtained consent from individuals whose likenesses were used and that its response to the widespread deepfakes was insufficient.
Under Canada's Personal Information Protection and Electronic Documents Act (PIPEDA), organizations must obtain meaningful consent for the collection and use of personal information. The report said xAI launched Grok without proper safeguards or privacy considerations, allowing users to create and share non-consensual deepfakes. The tool's launch did not include content filters or age verification measures that could have prevented the abuse.
In response, X and xAI committed to issuing quarterly reports and independent third-party audit reports on improvements to safeguards. These will be submitted to the privacy commissioner's office until the issue of sexualized deepfakes is fully resolved. The companies also introduced new safeguards during the investigation and began proactive sweeps to flag and take down harmful content on the platform.
The ruling adds to the regulatory pressure on social platforms over AI-generated content. Canada's privacy commissioner can enforce PIPEDA through compliance orders and potential fines. The case also highlights the operational risk for companies that deploy generative AI without embedded content moderation.
The report did not specify financial penalties but said the commissioner expects the commitments to be implemented. Further findings or enforcement actions could follow if the safeguards prove inadequate. The decision is the latest in a series of global regulatory actions against X under Elon Musk's ownership, including EU Digital Services Act probes and a U.S. Federal Trade Commission consent decree.
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