Meta Platforms (META) has faced new pressure after reports showed that its artificial intelligence tools were used to create chatbots that copied the names and images of several well-known celebrities. Meta has already been the subject of numerous controversies over the past few years, and this adds another pearl to the collection. According to Reuters, the bots included versions of Taylor Swift, Scarlett Johansson, Anne Hathaway, and Selena Gomez. Users created some through a Meta tool for building chatbots, while at least three were made by a Meta employee. The company later confirmed that some of the content broke its own rules.
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Furthermore, the chatbots presented themselves in a flirty or intimate tone. In several cases, the bots also produced images that were not allowed under Meta’s policies, such as revealing or sexual photos. After being questioned by Reuters, Meta removed about a dozen of these chatbots. The company said the problem reflected a lapse in enforcement rather than a policy change.
Meanwhile, META stock has declined 1.65% during Friday’s trading session.
Legal and Safety Concerns
Legal experts told Reuters that Meta may face questions about whether these bots violated the publicity rights of the celebrities. In many states, people have control over how their names and images are used. This issue has gained attention as actors and musicians push for stronger rules on how artificial intelligence can use likenesses without approval. Industry groups such as SAG-AFTRA have also raised concerns.
Additionally, there were safety concerns related to how the bots could interact with younger users. Reuters found that an earlier version of Meta’s guidelines allowed bots to take part in romantic chats with teens. The company has since removed that allowance and promised new safeguards.
Outlook for Investors
For investors, the episode highlights the growing risks associated with AI products. Companies like Meta are trying to expand AI use across social media platforms, but new content tools carry legal and regulatory exposure. Meta is also under scrutiny from U.S. lawmakers who are reviewing how AI impacts user safety and rights. Therefore, while the issue may not change Meta’s near-term financial outlook, it does add another layer of risk to the company’s broader AI push.
Is META Stock a Buy?
As stated above, this new information hasn’t impacted Meta’s stock performance, as it continues to exhibit a bullish sentiment among the Street’s analysts, with a Strong Buy consensus. The average META stock price target stands at $872.48, implying an 18.11% upside from the current price.
