Meta Faces Legal Scrutiny Over Celebrity AI Chatbots as Stock Dips
Meta Platforms (META) confronts fresh legal and reputational risks after Reuters revealed its AI tools were exploited to create unauthorized chatbots mimicking celebrities like Taylor Swift and Scarlett Johansson. The chatbots, some developed by a Meta employee, adopted flirtatious personas and generated policy-violating imagery before being removed.
Legal experts warn of potential publicity rights violations, compounding Meta's ongoing regulatory challenges. The controversy coincides with a 1.65% Friday decline in META shares, reflecting investor unease about the company's ability to manage AI governance risks.