Meta Platforms (META) stock was pounded today as it faces a potential probe into workers having to view graphic content recorded by its smart glasses.
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Sexual Content Viewed
According to a report on the BBC, Meta is facing increased pressure to explain why it cancelled a contract with an African company it was using to train AI, shortly after some of its workers alleged they had to view content, including people having sex and going to the toilet, captured by its smart glasses.
Meta said the company called Sama did not meet its standards. However, a Kenyan workers’ organization alleges Meta’s decision was caused by the staff speaking out. The Office of the Data Protection Commissioner in Kenya has announced it is launching an investigation into privacy concerns raised by the glasses.
In late February, two Swedish newspapers Svenska Dagbladet (SvD) and Goteborgs-Posten (GP) published an investigation which included the accounts of unnamed workers who had been asked to review videos filmed by Meta’s glasses. “We see everything – from living rooms to naked bodies,” one worker reportedly said.
Further Blow to Meta
At the time of the publication, Meta said subcontracted workers might sometimes review content filmed on its smart glasses when people shared it with Meta AI. That was to improve the customer experience.
A Meta spokesperson told the BBC: “Last month, we paused our work with Sama while we looked into these claims. We take them seriously. Photos and videos are private to users. Humans review AI content to improve product performance, for which we get clear user consent.”
Meta has previously said that its glasses are designed so that captured media normally stays on the user’s device unless the user chooses to share it. The company also stated that when users do share content with Meta AI, contractors may review some of the data to improve the service, but Meta says it applies filters to reduce privacy risks and prevent identifiable information from being exposed.
This is a further blow to Meta, in a week where its stuttering AI growth has seen it lose ground to Magnificent Seven rivals such as Alphabet (GOOGL).
It could also pose a reputational risk to the company. It is why legal and regulatory issues are a key risk for the stock – see above.
Is META a Good Stock to Buy Now?
On TipRanks, META has a Strong Buy consensus based on 31 Buy and 7 Hold ratings. Its highest price target is $1,015. META stock’s consensus price target is $826.66, implying a 35.92% upside.
