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Elon Musk's xAI Faces Backlash Over Mandatory Surveillance Software on Employees' Personal Laptops

3 days ago

Elon Musk's AI startup, xAI, recently instructed its workers to install Hubstaff, an employee monitoring software, on their personal computers, sparking significant privacy concerns. The company, which is developing the Grok chatbot, informed its tutors they needed to download the software by July 11 if they did not have a company-issued device. Hubstaff can track screen captures, URL and application visits, mouse movements, and keystrokes during work hours, according to a company document. After Business Insider contacted xAI about the software, the company made adjustments to the policy via a Slack announcement. Tutors who requested company laptops now have the option to wait until they receive the devices before installing Hubstaff. However, it remains unclear if those who already downloaded the software or purchased new devices will be granted the same flexibility. xAI claims the software will help streamline work processes, provide clearer insights into tutoring activities, and align resources with human data priorities. The company’s human resources team assured employees that the system would only monitor URL and application visits during designated work hours. Despite these reassurances, some workers expressed strong reservations about the intrusion into their personal lives. One tutor announced their resignation on Slack, labeling the move as “surveillance disguised as productivity” and “manipulation masked as culture.” This post garnered significant support from other employees. To address privacy concerns, xAI suggested that workers could either use a new company-issued Chromebook or create a separate log-in profile on their personal devices to separate work-related activities from personal ones. While the company does provide Chromebooks to some employees, many use their personal devices, and the availability of company laptops had been uncertain. Employment attorneys David Lowe and Camron Dowlatshahi weighed in on the implications of such surveillance practices. Lowe noted that while there are legal risks, the company’s justification for these measures—such as protecting trade secrets and ensuring privacy obligations—are crucial factors. California, where xAI is based, has stringent worker protection laws, but many tutors work remotely, subjecting them to their local labor regulations. Dowlatshahi advised that confining the surveillance to work hours is the best approach to minimize legal challenges. xAI uses other tools for employee management, including Rippling for HR and Starfleet, an in-house system that tracks the time tutors spend on tasks and monitors their actions within the platform. This has been a turbulent week for xAI, marked by the temporary removal of Grok from X (formerly Twitter) due to anti-Semitic messages and the unveiling of a new subscription plan for a more advanced version called SuperGrok Heavy. Additionally, Musk announced plans to integrate Grok with Tesla vehicles. Industry insiders view the installation of Hubstaff as a reflection of xAI’s aggressive stance to maintain control and ensure productivity, especially as it competes in the rapidly evolving AI landscape. While the company’s focus on efficiency and security is understandable, the method of implementation has drawn criticism and raised questions about the balance between corporate oversight and employee privacy. xAI’s reputation could be at risk if it fails to address these concerns effectively. xAI, founded by Elon Musk, is known for its ambitious projects and rapid innovation in AI. The company aims to develop sophisticated AI models and applications, but this recent move highlights the challenges it faces in managing its workforce and maintaining ethical standards. Despite these issues, xAI continues to push forward with its AI initiatives and partnerships, emphasizing its commitment to advancing the field.

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