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The artificial intelligence startup, xAI, backed by Elon Musk, is facing backlash from its employees over the introduction of a controversial workforce management system.
What Happened: The company has been encouraging its staff to install a software called Hubstaff on their personal laptops. This move has raised significant privacy concerns and has even led to an employee’s resignation.
Initially, xAI directed its tutors, who train its Grok chatbot, to install the software by July 11, particularly those without a company-issued device.
As per the report by Insider, The mandatory software enabled screen captures, and monitored URL and application visits during work hours. Additionally, Hubstaff has the capability to track mouse movement and keystrokes.
After the outlet’s inquiries, xAI revised its policy. Employees who requested company laptops could postpone the software installation until they received their company-issued device.
However, the company has not clarified whether employees who adhered to the initial deadline or purchased a new device can also delay the software installation.
xAI’s HR team justified the new tool as a means to “streamline work processes, provide clearer insights into daily tutoring activities, and ensure resources align with Human Data priorities.”
Nonetheless, several employees expressed their privacy concerns, with one resigning over the Hubstaff roll-out, describing it as “surveillance disguised as productivity” and “manipulation masked as culture.”
Employees concerned about data privacy were advised to either purchase a new computer using xAI’s $50 per month tech stipend or create a separate log-in and profile on their device. The software would not track activity outside of work hours.
Why It Matters: This incident underscores the ongoing debate about employee privacy in the era of remote work. As companies increasingly turn to digital tools to manage their workforce, the balance between productivity and privacy is becoming a contentious issue.
The situation at xAI serves as a stark reminder of the potential pitfalls of such technologies and the importance of clear communication and transparency in their implementation.
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