Elon Musk Faces EU Probe Over AI Training In Austria

Elon Musk’s social media platform, X, is facing an investigation in Austria over alleged violation of the data privacy law through the use of personal data for AI training. The Austrian privacy NGO NOYB, directed by Max Schrems, has filed a complaint before the Austrian authorities for breach of the EU’s strong privacy rules.

This complaint echoes similar concerns in the EU regarding tech giants exploiting user information without their permission.

Elon Musk’s X Scrutiny Over Alleged Data Violations

NOYB’s complaint alleges that the platform has been processing and using without EU users’ consent personal data to train AI models including data which was collected from 7th May 2024 to 1st August 2024. NOYB says that X did not notify users or seek their consent to process their data as is required by the GDPR. 

The advocacy group has called for an investigation by the Austrian authorities to guarantee the respect for EU privacy rules.

Concurrently, the Irish Data Protection Commission (DPC), the lead regulator for X in the EU, had also filed legal action against the platform. The DPC is asking the court for an injunction against Elon Musk’s from using user data for AI training, arguing that the company’s activities are not compliant with GDPR. This legal action is in line with similar moves across Europe to address the handling of personal data by tech giants.

AI Training Paused Amid Legal Pressure

Under the increasing legal pressure, the Elon Musk platform agreed to temporarily suspend the use of European user data for AI training on August 8. This was conveyed to the Irish High Court but the issue of how data collected prior to withdrawal of consent is dealt with has not been addressed. 

Although this is being viewed as a partial victory for the privacy campaigners, NOYB has complained that the legal validity of the data processing has not been resolved.

Nevertheless, the fate of the data processed by the Musk platform is still a subject of debate. In addition to Austria, NOYB had lodged complaints against the platform in Belgium and France.

European Scrutiny of AI Data Practices

The legal actions of the DPC against the Elon Musk platform are in line with the increasing pressure from the European regulators on the largest technology companies, including the use of people’s data to train AI. In June, similar concerns forced the DPC to make Meta temporarily suspend its AI projects in Europe. 

Now, Musk’s platform is faced with similar problems, and the results of these legal actions may have significant implications for the further development of AI regulation in the EU.

The scrutiny of its practices comes as Elon Musk is scheduled to meet with U. S. Republican presidential candidate Donald Trump on X Spaces. This meeting is generating significant interest, particularly within the crypto community, given Musk’s influence on digital currencies and his recent actions regarding AI technology.