Ireland’s Data Protection Commission (DPC) has launched a formal investigation into the AI chatbot Grok, developed by X Corp., over concerns related to personal data processing and the generation of harmful sexualised content.
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The regulator announced on Tuesday that the inquiry will examine whether X complied with obligations under the European Union’s General Data Protection Regulation (GDPR). Ireland serves as the lead EU regulator for the company because its European operations are headquartered in the country.
The probe follows widespread controversy after Grok allegedly generated AI-altered, near-nude images of real individuals in response to user prompts, sparking global criticism. Despite platform restrictions introduced by X to limit such outputs, reports indicated the chatbot continued producing similar content when prompted.
According to the DPC, the investigation aims to determine whether personal data was processed lawfully and whether adequate safeguards were in place to prevent misuse, particularly concerning content involving children.
Deputy Commissioner Graham Doyle said the watchdog had been engaging with X Internet Unlimited Company for several weeks after media reports highlighted the chatbot’s ability to generate sexualised imagery. The inquiry will assess compliance with key GDPR obligations and could lead to significant penalties if violations are confirmed.
Under GDPR rules, regulators can impose fines of up to four percent of a company’s global annual revenue.
The investigation comes amid broader scrutiny of AI-generated content across Europe. The European Commission opened a separate inquiry in January into whether Grok disseminated illegal manipulated images within the EU, while Britain’s privacy watchdog launched its own probe earlier this month.
The issue has also intensified tensions between U.S. technology firms and European regulators. U.S. President Donald Trump and tech billionaire Elon Musk have criticised EU digital regulations, arguing that large fines imposed on American companies amount to unfair economic pressure.
The DPC said the outcome of the inquiry will depend on whether X’s AI systems met European standards for data protection and online safety.
