According to Reuters, Meta Platforms (META) has hit the brakes on its generative AI tools in Brazil after the country’s data protection authority, ANPD, raised a fuss about its new privacy policy. The decision follows the agency’s immediate ban on the policy, citing concerns about user data being used to train AI systems.
Brazil’s Importance to Meta
Brazil is a big deal for Meta. With over 200 million people, it’s one of the company’s most significant markets. For example, Brazil has the second-largest number of WhatsApp users, just behind India. In fact, Meta recently launched its first AI-driven ad targeting program for businesses in Sao Paulo.
The ANPD Puts Its Foot Down
According to Reuters, earlier this month, the ANPD suspended Meta’s new privacy policy, which let the company use personal data for AI training. The agency was worried about the potential risks to users’ fundamental rights, highlighting the imminent threat of serious, irreparable damage. The ANPD demanded that Meta revise its policy to exclude data processing for AI training.
Meta’s Reaction
Meta didn’t take the news well. In a statement, the company expressed disappointment with the ANPD’s decision, calling it a setback for innovation and competition in AI development. Meta has decided to put its GenAI tools on hold while it hashes things out with the ANPD. The company warned that this move could delay the benefits of AI for Brazilian users.
Personal Data Controversy in the Tech Sector
The controversy over using personal data for AI training is not unique to Brazil. Tech giants worldwide are grappling with similar issues. For instance, Apple has delayed launching its AI features in Europe due to strict data privacy laws under the Digital Markets Act. Likewise, Meta has paused its upcoming AI models for European customers because of unpredictable regulations.
Human Rights Watch recently reported that personal photos of Brazilian children ended up in image caption datasets like LAION-5B, raising fears about deepfakes and exploitation.
Meta’s decision to stop its AI tools in Brazil shows how there’s this constant battle between tech innovation and worries about data privacy all over the world.
Is Meta Stock a Buy or Sell?
Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average META price target of $536.16. The company’s share price is up by nearly 31% year-to-date.
