xAI Mandates Employees Training Grok to Install Surveillance Software Amid Privacy Concerns

Elon Musk’s company xAI has demanded that employees training the Grok chatbot install Hubstaff, a monitoring software, on their personal computers.

Initially, AI trainers were required to download the software by July 11 if they did not have a company-issued device. They also had to grant permission for screenshot access.

Later on, xAI officially revised its Slack policy: employees requesting business computers no longer need to install the software until they receive a corporate laptop.

It remains unclear whether those who installed the software prior to July 11 or purchased new devices can opt for this option.

The company stated that the system would only be used to monitor employees’ visits to URLs and applications during designated work hours. However, according to information on the company’s website, Hubstaff can also track mouse movements and keystrokes.

Hubstaff is intended to assess employee performance and collect data on how they conduct research.

Reports on Slack indicated that some employees raised concerns about privacy. One individual mentioned that they would resign due to the introduction of Hubstaff, stating it felt like «surveillance dressed up as productivity» and «manipulation masked as culture.»

Employees worried about data privacy have been given the option to either purchase a new computer using xAI’s monthly $50 tech stipend or create a separate login and profile on their device.

While the company provides some staff with company-issued Chromebooks, xAI informed workers that its supplies of these devices had run out before implementing Hubstaff, and it is unclear when they will be restocked.

Other AI companies have also utilized Hubstaff. In a lawsuit against Scale AI, a former employee alleged that the company mandated using the program to monitor data annotators, requiring them to install the software on their personal computers. A representative from Scale AI replied that the firm uses Hubstaff «to help employees track the time spent on tasks, ensuring accurate payments.»

Employment lawyer David Lowe, who has filed lawsuits against Tesla and X, noted that such monitoring tactics could present legal risks for the company, often depending on the justification for the added security measures, the presence of notifications, and reimbursement options.

xAI might argue that «the company is concerned about maintaining trade secrets and ensuring that employees do not breach confidentiality obligations,» Lowe explained.

In California, where xAI is headquartered, some of the strictest employee protection laws are in effect, but many of the company’s employees work remotely and are subject to the labor laws of their respective regions.

In addition to Hubstaff, xAI also employs the Rippling HR management system to track employee work hours and a proprietary system called Starfleet, which records the time AI trainers spend on each task.

Meanwhile, an independent developer discovered that the new xAI Grok 4 model may report users and send emails to the relevant authorities if it suspects any legal violations or unethical conduct.