Canada finds Elon Musk's xAI Grok AI tool violates privacy law

Canada’s privacy commissioner, Philippe Dufresne, concluded that the Grok AI image‑generation tool from Elon Musk’s xAI created and shared non‑consensual sexual deepfakes, violating Canada’s federal private‑sector privacy law. The tool was launched without adequate safeguards, allowing users to produce more than 6,000 sexualized images per hour, often targeting women and children. Both xAI and X Corp., which operates the X platform, were found non‑compliant. Dufresne recommended suspending the tool until proper safeguards are in place, but the commissioner lacks power to enforce fines or orders. The company has introduced limited safeguards and agreed to quarterly monitoring reports, yet the commissioner says the measures are insufficient. The case highlights gaps in Canada’s privacy legislation, prompting the government to consider updates to its privacy law and an online safety bill that would regulate AI chatbots and social media platforms. Canada joins other jurisdictions, including the UK and the EU, in investigating the misuse of AI‑generated sexual deepfakes.