Microsoft's LinkedIn Faces Privacy Scrutiny Over AI Data Sharing

Microsoft's LinkedIn is facing a significant legal challenge following a lawsuit alleging that the professional networking platform violated user privacy by sharing personal data for AI model training without explicit consent. The proposed class action, filed in the San Jose, California, federal court, seeks unspecified damages for breach of contract and violations of California’s unfair competition law, as well as $1,000 per person for violations of the federal Stored Communications Act.



The lawsuit, De La Torre v. LinkedIn Corp, U.S. District Court, Northern District of California, No. 25-00709, claims that LinkedIn quietly introduced a privacy setting last August that allowed users to enable or disable the sharing of their personal data. However, the platform updated its privacy policy on Sept. 18, 2024, stating that data could be used to train AI models. In a "Frequently Asked Questions" hyperlink, LinkedIn said opting out "does not affect training that has already taken place."



The complaint alleges that LinkedIn's actions suggest it was fully aware of violating customers' privacy and its promise to use personal data only to support and improve its platform. The lawsuit represents LinkedIn Premium customers who sent or received InMail messages and whose private information was disclosed to third parties for AI training before Sept. 18.

Microsoft, which owns LinkedIn, has not yet responded to requests for comment on the lawsuit. A lawyer for the plaintiffs had no immediate additional comment. The lawsuit was filed several hours after U.S. President Donald Trump announced a joint venture among Microsoft-backed OpenAI, Oracle, and SoftBank, with a potential $500 billion of investment, to build AI infrastructure in the United States.

The alleged data sharing by LinkedIn has raised concerns about user trust and the potential long-term retention of premium subscribers. The breach of trust, privacy concerns, potential loss of revenue, and regulatory implications all contribute to a challenging environment for LinkedIn and Microsoft. The lawsuit and any subsequent fines or settlements could have significant financial implications for both companies, potentially impacting Microsoft's broader AI strategy and public perception of its commitment to privacy and ethical AI development.

In conclusion, Microsoft's LinkedIn faces a substantial legal and reputational challenge following the lawsuit alleging privacy violations related to AI data sharing. The outcome of this case will have significant implications for user trust, Microsoft's AI strategy, and the broader tech industry's approach to data privacy and ethical AI development.