Meta Faces Challenges with AI Development in EU and Brazil

Meta’s plans for expanding its generative AI have encountered issues in the EU and Brazil due to regulatory concerns about user data usage. In the EU, Meta is pausing its AI efforts, especially its multimodal models crucial for upcoming AR glasses and other tech. This decision is due to the unpredictable European regulatory environment.

Last month, the advocacy group NOYB urged EU regulators to investigate Meta’s new policy that allows the use of user data to train AI models. NOYB claims Meta’s policy changes violate the GDPR, stating: “Meta claims it can use any data for any purpose globally if done via AI technology. This broad term lacks legal limits and doesn’t specify data usage, raising concerns about GDPR compliance.”

The EU Commission has asked Meta to clarify how it gets user permission for data usage, leading Meta to scale back its AI development plans in the region. UK regulators are also reviewing Meta’s data access methods.

In Brazil, Meta is withdrawing its generative AI tools after local authorities raised similar privacy concerns regarding user data.

A major question in AI development is the need for human input to train models. People should have the right to decide if their content is used in these models. Artists and social media users worry about their work and personal data being used without consent, creating potential copyright issues. NOYB argues that users should at least have the right to opt-out of data usage for AI training.

Despite these regulatory challenges, Meta’s AI development is unlikely to be significantly affected initially. Meta already possesses extensive data for its experiments, so immediate development will continue. However, if many users opt-out in the future, it could hinder ongoing development.

These issues might delay Meta’s AI rollout and its efforts to lead in AI development. NOYB has also called for similar investigations into other major AI projects like OpenAI, which could face the same scrutiny.

For now, users in the EU, UK, and Brazil won’t access Meta’s AI chatbot. This might not be a significant loss given mixed user responses to the tool, but it could delay Meta’s hardware releases like Ray-Ban glasses and VR headsets.

Meta will likely seek alternative solutions, but these challenges highlight broader concerns about data permissions and user consent across all regions. The situation is evolving, and it remains to be seen how Meta will address these data challenges.