Video conferencing and messaging provider Zoom faces severe backlash for changes it quietly made to its Terms of Service (TOS) in March related to AI â raising new questions about customer privacy, choice, and trust. These questions will apply to every company grappling with AI during a growing debate about how large language models (LLMs) are trained on individualsâ data. Still, it is particularly concerning for the reputation of a company like Zoom, which has become ubiquitous for everything from office meetings to remote schools.
Yesterday reports spread widely that Zoom had changed its TOS, clarifying that the company can train AI on user data with no way to opt-out. The news began with a post on X (formerly Twitter) yesterday from author Ted Gioia, which now has over 2 million views.
According to Katie Gardner, a partner at international law firm Gunderson Dettmer, itâs common for companies to update their Terms of Service as their practices change frequently, and some privacy regulations, such as the CCPA, require companies to update their Privacy Policies annually. âCompanies need to notify users of material changes to their practices if they want the changes to be legally enforceable against them,â she told VentureBeat in a phone interview. âAt least in the case of Zoom, if done quietly, it was likely because the change wasnât material â it was just stating more explicitly something it [had] already retained the rights to do.â
That said, she pointed out that tech companies are currently making these updates because theyâre seeing backlash from regulators. âThe methods by which companies collect consent for using user data for training purposes are targets of enhanced regulatory review,â she said, including the FTCâs…