A growing storm over artificial intelligence (AI) abuse has pushed European regulators into action. The European Union (EU) has launched a formal investigation into Elon Musk’s social media platform X after its AI chatbot, Grok, was used to generate manipulated sexually explicit images, including content that may amount to child sexual abuse material.
The inquiry, launched under the European Union’s Digital Services Act (DSA), will assess whether X properly evaluated and reduced the risks posed by Grok before rolling out its image-generation tools across the platform. Regulators said those risks have already “materialised,” exposing European citizens to serious harm.
“Sexual deepfakes of women and children are a violent, unacceptable form of degradation. With this investigation, we will determine whether X has met its legal obligations under the DSA, or whether it treated rights of European citizens – including those of women and children – as collateral damage of its service,” said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
AI Misuse Sparks Global Outrage
Grok triggered international backlash after users discovered it could be prompted to digitally “undress” women and children or place them in sexualised poses. Researchers at the Center for Countering Digital Hate estimate the tool generated around three million sexualised images in less than two weeks, including thousands that appeared to depict minors.
The backlash has triggered regulatory action worldwide. The UK’s media watchdog Ofcom is examining whether X breached the country’s Online Safety Act, while data authorities in the United States, Australia, France, and Germany are also scrutinising the platform. Several countries, including Indonesia and Malaysia, temporarily blocked Grok altogether before safeguards were introduced.
Controversial Response From X
In response to the uproar, X initially restricted Grok’s image-generation tools to paid subscribers — a decision that drew fierce criticism from European and UK officials. A UK Prime Minister’s spokesperson called the decision “insulting to victims of misogyny and sexual violence,” accusing the company of monetising harmful content.
Under mounting pressure, X later announced measures to stop Grok from editing images of real people into revealing clothing. EU officials, however, said those steps failed to address broader systemic risks.
What’s At Stake For X
As a designated “very large online platform” (VLOP) under the DSA, X is required to mitigate any potential systemic risks related to its services in the EU, such as illegal content, and potential threats to fundamental rights, including those of minors, posed by its platform and features.
If the Commission finds the company in breach of the DSA, X could face fines of up to 6% of its global annual revenue, along with possible interim restrictions.
The Commission is also extending a separate investigation into X’s recommender systems, especially after the company revealed plans to rely more heavily on Grok to filter and recommend content.
A Broader Warning To Big Tech
The latest inquiry comes just weeks after the EU fined X €120 million for transparency violations, including misleading blue tick verification practices and obstructing independent research. While Musk has openly criticised EU regulators, officials insist enforcement is essential.
For European regulators, the message is clear. “No company operating in the EU is above the law,” said Irish MEP Regina Doherty. “When powerful technologies are deployed at scale, the rules must mean something in practice.”
As the investigation moves forward, the Grok investigation could become a landmark case for how far governments are willing and able to go in holding AI-driven platforms accountable.
