Ireland's Data Watchdog Joins Global Regulators Probing X Over AI Image Risks

Ireland's Data Watchdog Joins Global Regulators Probing X Over AI Image Risks

Source: Decrypt

Published:10:40 UTC

BTC Price:$67809

#DOGE #ElonMusk #Regulations

Analysis

Price Impact

Med

Ireland's dpc, alongside global regulators, has initiated a formal gdpr inquiry into x (elon musk's platform) over grok's alleged generation of non-consensual sexualized images, including those of children. this widespread regulatory crackdown across europe, the uk, australia, and the u.s. creates significant legal, reputational, and financial risks for x and xai. while not directly related to a cryptocurrency, such substantial negative news about an elon musk-affiliated venture could indirectly affect sentiment around dogecoin, which is often influenced by musk's public image and other projects.

Trustworthiness

High

The information originates from decrypt, a reputable crypto news source, detailing formal investigations launched by multiple official regulatory bodies (irish dpc, european commission, ofcom, ico, california ag) and citing reports from organizations like ccdh and unicef. this indicates a high level of verification and official action.

Price Direction

Bearish

Negative news involving severe regulatory scrutiny and ethical concerns surrounding an elon musk-owned company, particularly allegations of generating illegal and harmful content, can create fud (fear, uncertainty, doubt) in the market. this sentiment could spill over to assets like dogecoin, which are closely associated with musk's public persona, potentially leading to downward price pressure or hindering upward movement.

Time Effect

Long

Large-scale international regulatory inquiries, especially those involving complex ai ethics and data protection laws, are typically protracted processes. the investigations, potential legal battles, fines, and mandated operational changes for x/grok will likely unfold over an extended period, leading to sustained negative sentiment and potential indirect pressure on associated assets.

Original Article:

Article Content:

In brief Ireland's DPC has opened a large-scale GDPR inquiry into X over Grok's generation of non-consensual sexualized images, including those of children. The investigation examines whether X complied with core GDPR obligations in how it deployed Grok's image features to EU users. The probe is the latest in a global regulatory wave targeting Grok, with formal actions now open across Europe, the UK, Australia, and the U.S. Ireland’s privacy regulator has opened a formal investigation into X over whether Elon Musk’s Grok chatbot helped generate and spread non-consensual sexualised images, including of children, adding heat to a widening global crackdown on AI “nudification” tools. The Data Protection Commission (DPC) launched the inquiry into X Internet Unlimited Company (XIUC),  the EU-registered legal entity through which Elon Musk's social media platform operates in Europe, under Ireland’s Data Protection Act 2018, focusing on “the apparent creation, and publication on the X platform, of potentially harmful, non-consensual intimate and/or sexualised images… including children” using Grok’s generative AI tools. The watchdog said it notified XIUC of the decision to commence the inquiry and will assess compliance with core GDPR requirements, the EU’s General Data Protection Regulation, including principles of processing, lawful basis, privacy-by-design, and whether a data protection impact assessment was required.  “As the Lead Supervisory Authority for XIUC across the EU/EEA, the DPC has commenced a large-scale inquiry which will examine XIUC’s compliance with some of their fundamental obligations under the GDPR in relation to the matters at hand,” Deputy Commissioner Graham Doyle said in the statement. The investigation comes as Ireland, which serves as the EU's lead supervisory authority for most major American tech platforms, giving its rulings binding weight across the bloc, joins a widening international response to Grok's role in generating non-consensual deepfakes at scale. The Center for Countering Digital Hate (CCDH) reported last month that Grok generated an estimated 23,338 sexualized images depicting children, over an 11-day period from December 29 to January 9, and researchers found about one-third of those sampled images remained accessible on X despite the platform’s zero-tolerance policies. Following the backlash, X restricted Grok’s image generation and editing to paid subscribers, added technical barriers to stop users from digitally manipulating people into revealing clothing, and geoblocked the feature in jurisdictions where such content is illegal. Decrypt has reached out to xAI for comment. Global regulatory crackdown In January, the European Commission opened a formal Digital Services Act probe into X over Grok’s alleged role in generating and spreading illegal sexualized content. Days later, French authorities raided X’s Paris offices in coordination with Europol, summoning Musk and several executives for questioning. In the UK, both Ofcom and the Information Commissioner’s Office opened separate investigations, with Ofcom warning it could seek court-backed measures to effectively block X’s service if found non-compliant, as Prime Minister Keir Starmer said he would seek new parliamentary powers to bring AI chatbot providers under online safety law. Australia’s eSafety Commissioner Julie Inman Grant said complaints involving Grok and non-consensual AI-generated sexual images have doubled in recent months, and said her office would use its enforcement powers where needed. California Attorney General Rob Bonta announced a formal investigation into xAI and Grok over the creation and spread of non-consensual sexually explicit AI images of women and children. Earlier this month, UNICEF called AI sexual deepfakes “a profound escalation of the risks children face in the digital environment,” saying at least 1.2 million children were targeted last year and urging governments to criminalize AI-generated abuse material and require safety-by-design safeguards. Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Your Email Get it! Get it!