AI Media Firm Needs Privacy Ombudsman in Disney Deal, Judge Says - Bloomberg.com
AI Character Technologies is being urged to hire a privacy ombudsman to evaluate potential harm to children from its AI platform as part of its planned technology licensing deal with Walt Disney Co. The recommendation came from US Bankruptcy Judge Brendan Shannon during a hearing on Friday. While Shannon did not issue a formal order, he emphasized the importance of addressing privacy concerns that have led to lawsuits and state investigations.
The judge stated he would “strongly encourage” the company to appoint an expert to assess customer privacy issues. This move aims to address concerns raised by several state attorneys general, who have expressed worries about the platform’s impact on children. The decision highlights the growing scrutiny over AI technologies and their potential risks to younger users.
The hearing took place in a bankruptcy court, suggesting that the company’s financial situation may also be influencing the judge’s recommendations. The appointment of a privacy ombudsman could help mitigate legal and regulatory risks as AI Character Technologies navigates its bankruptcy proceedings and the proposed Disney deal.