Government Issues Ultimatum to X Over AI Misuse: What’s Next for Elon Musk’s Platform?

The Indian government has issued a stern warning to X, led by Elon Musk, regarding the misuse of AI tools like Grok for generating inappropriate content. With a deadline set for January 7 to submit a detailed Action Taken Report, X faces significant scrutiny over its content moderation practices. The IT Ministry has emphasized the need for compliance with the IT Act, warning that failure to do so could result in severe legal consequences. This situation is not isolated, as X is also under fire from authorities in the UK and Malaysia for similar issues. As the platform navigates these challenges, the implications for its operations and user safety remain critical.
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Government Issues Ultimatum to X Over AI Misuse: What’s Next for Elon Musk’s Platform?

Government's Warning to X


New Delhi: The Indian government has granted X an extension until January 7 to provide a comprehensive Action Taken Report (ATR) following a serious warning regarding the inappropriate and sexually explicit content generated through AI tools like 'Grok'.


This extension was requested by X from the IT Ministry, according to sources.


On Sunday, X's 'Safety' account announced its commitment to combat illegal content on its platform, including Child Sexual Abuse Material (CSAM), by removing such content, permanently suspending offending accounts, and collaborating with local authorities as needed.


"Anyone using Grok to create illegal content will face the same repercussions as those who upload such content," the account reiterated, echoing Musk's position on illegal material.


Government sources indicated that X had requested additional time, and now it must submit its report by the new deadline.


On Friday, the Centre reprimanded X, instructing it to promptly eliminate all vulgar and unlawful content, particularly that generated by Grok, or face legal consequences. The ministry had previously mandated the US-based platform to deliver a detailed ATR within 72 hours of the directive, effectively by January 5.


In a communication dated January 2, the IT Ministry highlighted that Grok AI, developed by X and integrated into the platform, is being exploited by users to create fake accounts that host, generate, publish, or share obscene images or videos of women in a derogatory manner.


"This misuse extends beyond fake accounts and targets women who share their images or videos through prompts, image manipulation, and synthetic outputs," the ministry stated, emphasizing that such actions indicate a significant failure in platform-level safeguards and enforcement mechanisms, amounting to a severe misuse of AI technologies in violation of existing laws.


The ministry pointed out that the platform is violating regulatory provisions under the IT Act and associated rules, particularly concerning obscene, indecent, vulgar, pornographic, or otherwise unlawful content.


"These actions are viewed with grave concern, as they violate the dignity, privacy, and safety of women and children, normalize sexual harassment and exploitation in digital spaces, and undermine the statutory due diligence framework applicable to intermediaries operating in India," the IT Ministry remarked.


The government made it clear to X that adherence to the IT Act and its rules is mandatory, and that the statutory exemptions under section 79 of the IT Act, which pertains to safe harbor and immunity from liability for online intermediaries, are contingent upon strict compliance with due diligence obligations.


"You are advised to refrain from hosting, displaying, uploading, publishing, transmitting, storing, or sharing any content on your platform that is obscene, pornographic, vulgar, indecent, sexually explicit, or otherwise prohibited under any law," the ministry stated on January 2.


The government warned X that any failure to meet due diligence obligations could lead to the loss of the exemption from liability under section 79 of the IT Act, and the platform would also be subject to further legal action under other laws, including the IT Act and Bharatiya Nyaya Sanhita.


X has been instructed to enforce its user terms and AI usage restrictions, including implementing strong deterrent measures such as suspensions and terminations against violating users and accounts.


Additionally, X must remove or disable access to all content that has been generated or disseminated in violation of applicable laws without delay, ensuring compliance with the timelines set forth in the IT Rules, 2021, while preserving evidence.


The ministry has mandated X to submit a detailed ATR within 72 hours of the issuance of the letter.


This ATR must outline specific technical and organizational measures taken or proposed regarding the Grok application; the oversight role of the Chief Compliance Officer; actions taken against offending content, users, and accounts; and mechanisms to ensure compliance with mandatory reporting requirements under Indian laws.


"Ensure ongoing, demonstrable, and auditable compliance with all due diligence obligations under the IT Act and the IT Rules, 2021, failing which appropriate action may be initiated, including the loss of the exemption from liability under section 79 of the IT Act, and consequential action as provided under any law including the IT Act and the BNS," the ministry wrote.


In addition to India, X has faced criticism from authorities in the UK and Malaysia. Ofcom, the UK's independent communications regulator, recently stated: "We are aware of serious concerns raised about a feature on Grok on X that produces undressed images of people and sexualized images of children."


"We have urgently contacted X and xAI to understand what steps they have taken to comply with their legal duties to protect users in the UK. Based on their response, we will conduct a swift assessment to determine if there are potential compliance issues that warrant investigation," Ofcom added.