Grok cases highlight risks for AI companies under Illinois privacy law

By Mike Scarcella WASHINGTON, Oct 13 (Reuters) — Elon Musk's SpaceXAI has been hit with two proposed class actions alleging its Grok platform violates a stringent Illinois privacy law through its manipulation of facial images, marking the latest lawsuits against AI companies over their collection and use of biometric data. The cases against SpaceXAI were filed in the federal court in Chicago, one of which was filed on Monday. They both allege that the company, formerly known as xAI, illegally collected and used an individual’s biometric information from an uploaded "selfie" photo without written notice. SpaceXAI did not immediately respond to a request for comment on Tuesday. The lawsuits are part of a growing wave of litigation targeting how AI companies are using personal information such as facial scans and voiceprints to build and operate their platforms. Alphabet's Google and notetaking and organizing app Otter.ai are among defendants also facing class action claims under the Illinois Biometric Information Privacy Act. The Illinois law restricts the collection and use of personal information such as retinal scans and fingerprints, and for many years has posed compliance hurdle