xAI’s Grok has reportedly infringed upon Canadian privacy legislation by launching an image generator capable of creating and disseminating sexualized deepfake images without user consent. This finding comes from a report by the country’s privacy commissioner, following an investigation initiated in January.

The official report, released on Thursday, follows changes implemented by the Elon Musk-owned platform to prevent Grok from allowing users to edit images of real individuals in revealing attire.

“xAI violated Canada’s federal private sector privacy law by launching the Grok AI-powered image generation tool without implementing appropriate safeguards from the outset,” stated Privacy Commissioner Philippe Dufresne during a press conference on Thursday.

However, Dufresne lacks the authority to impose financial penalties or mandate policy alterations for xAI, a subsidiary of SpaceX, which is slated to go public on United States markets on Friday, marking a significant initial public offering in modern history.

xAI has committed to proactive monitoring for sexualized deepfakes, rather than merely reacting to reported incidents, according to Dufresne.

This watchdog report emerges amidst the introduction of a new digital safety bill primarily aimed at protecting children. If enacted, this legislation would prohibit social media use for children under 16, with exemptions for companies adhering to specified safety standards.

The proposed law would also establish a digital regulator tasked with setting safety standards for AI chatbots, including platforms like Grok.

Global Scrutiny

xAI has faced international scrutiny concerning sexualized images generated on its platform.

• Earlier this month, British lawmaker Jess Asato initiated legal action against xAI after sexualized deepfake images of her were created on the platform.
• In January, Ofcom, the United Kingdom’s media regulator, commenced an investigation into the platform to assess its effectiveness in preventing the creation of sexualized deepfake images.
• That same month, the European Commission condemned the proliferation of explicit content on X, with regulators describing it as “appalling” and “disgusting,” leading to an official probe.
• February saw Spain launch its own investigation into Grok, and in March, a Dutch court ordered xAI to cease allowing the generation of nude images within the country.
• Concurrently, in the US, also in March, three teenage girls filed a class-action lawsuit, alleging that the platform facilitated images depicting child sexual abuse.
• Attorneys representing the three unnamed victims asserted in a California court complaint that xAI “has made explicit content part of Grok’s DNA.”
• In January, the US Senate passed a bill that would enable victims of deepfake sexually explicit images to sue creators for a minimum of $150,000.
• Furthermore, in January, Indonesia and Malaysia fully blocked Grok due to concerns over sexually explicit AI-generated images.