X Privacy Update: Understanding the Changes to User Data Policies

Introduction to the Recent X Privacy Update

Recently, the social media platform X, previously known as Twitter, has rolled out a significant X Privacy Update. This new policy permits third-party “collaborators” to utilize data generated by X users for training their artificial intelligence (AI) models. Users can choose to opt out of this data sharing. This update comes after scrutiny surrounding Elon Musk’s venture, xAI, which used user data to develop its Grok AI chatbot. Until now, X had not clearly communicated that third parties could also access user data for training AI models.

Understanding the Implications of the X Privacy Update

X is potentially reshaping its business model to capitalize on user-generated content by monetizing it through AI training collaborations.

Key Aspects of the X Privacy Update

According to Section 3 of the updated policy, which focuses on “Sharing Information,” there is now a stipulation regarding how user data may be utilized, in addition to outlining the opt-out process. The policy states:

“Third-party collaborators. Depending on your settings, or if you decide to share your data, we may share or disclose your information with third parties. If you do not opt out, in some instances the recipients of the information may use it for their own independent purposes in addition to those stated in X’s Privacy Policy, including, for example, to train their artificial intelligence models, whether generative or otherwise.”

User Settings and Privacy Management

Users are encouraged to visit the settings page on X to review their data-sharing options. However, the exact location for deactivating data-sharing features remains somewhat ambiguous. Currently, in the “Privacy and safety” segment, users can adjust their data-sharing preferences with xAI’s Grok. Additional business partners, though this does not encompass broader AI service providers.

This uncertainty about settings may be temporary, as the updated privacy policy is set to take effect on November 15. By then, it is hoped that a more defined opt-out mechanism will be integrated into user settings.

Revisions to Data Retention Policies

The X Privacy Update also introduces modifications to how user data is retained on the platform. The previous policy indicated that X retained user profiles and content for the duration of the account, maintaining personally identifiable information for up to 18 months. The new version clarifies that different types of information will be kept for varying durations based on their necessity for service provision, legal compliance, and security measures.

For example, usage data, which includes posted content and interactions, will remain accessible for as long as the account exists or until the associated content is deleted. Users should also be aware that anything shared publicly may persist even after deletion from X, as search engines and other third parties may retain copies based on their own privacy policies.

Financial Impacts and Liability for Data Scraping

Moreover, X has introduced a new section in its Terms of Service titled “Liquidated Damages,” which delineates penalties for entities that scrape data from the platform. Specifically, any organization accessing over 1,000,000 posts—including replies, images, and videos—within a 24-hour period will incur a $15,000 charge for each additional million posts accessed. This approach highlights X’s strategy to enhance data protection while exploring revenue generation through its content.

Navigating Advertisement Revenue Challenges

This new data monetization initiative arises in the wake of significant challenges faced by X due to advertiser withdrawals and ongoing boycotts, impacting its ad revenue.

Summary of the Key Aspects of the X Privacy Update

• The updated X Privacy Policy enables third-party access to user data for AI training.
• Users have the option to opt out, but specific settings to manage this remain unclear.
• Revised data retention policies indicate information will be held based on necessity.
• Entities scraping data could face substantial fines, according to the new terms.
• This initiative responds to recent financial challenges stemming from reduced advertisement revenue.