Video communications provider Zoom recently came under a lot of public pressure after changing its terms of service on using customer data to train its AI models. After an attempt at an explanation on its own blog, Zoom is now completely rowing back.
• Zoom triggers strong criticism because of changed terms and conditions
• The company’s statement cannot calm the waters
• Zoom makes a 180-degree turn on data use for AI training
The video conferencing service Zoom recently caused a great deal of public outrage due to a change in its terms of use, which also weighed heavily on the price of Zoom shares on the NASDAQ.
Zoom changes terms and conditions – and comes under great pressure
In its general terms and conditions, Zoom informed that the video service collects a large amount of user data and uses it, among other things, as training material for its artificial intelligence. The terms of use were changed to this effect as early as March 2023. It was only months later, however, that the changed, affected passages became public through an article in Stack Diary, which was quickly disseminated via various media outlets and social media, and had become more general outrage.
Specifically, the amended Terms of Service included a section stating that Zoom reserves the right to collect any “telemetry data, product usage data, diagnostic data and similar content or data that Zoom collects in connection with your use or your End Users’ use of the Services or Software or generated” for any purpose, as Netzpolitik quotes in an article. One of the top goals in this context – the training of Zoom’s own artificial intelligence, which the video service provider explicitly lists in the terms and conditions. In addition, the user rights would be given indefinitely and worldwide with confirmation of the terms and conditions.
AI-based functions as the cause of usage changes
The background to this far-reaching change in the terms of use are some AI-based functions that Zoom first launched a few months ago. The company now offers Zoom IQ meeting summaries and composing team chat messages with Zoom IQ. However, when activating these new functions by the Zoom admin or account user who is leading the Zoom meeting, the option to “share user data” was also activated at the factory. It is possible to turn off this option, but to do so, you must manually uncheck the box that is already set. If this is forgotten, overlooked or simply recognized as not relevant, consent is given for all meeting participants to use the data for any purpose Zooms.
Zoom tries to smooth the waves with a statement – unsuccessfully
The wave of outrage triggered by the changed terms and conditions immediately prompted Zoom to publish a statement on the company’s blog. In this, the company once again emphasized “that we only use customer content such as audio, video or chat files to train AI models if you agree to it”. The affected section of the terms of use has also been updated accordingly. In addition, Zoom clarified once again: “As far as artificial intelligence is concerned, we only use audio, video or chat content to train our models if the customer agrees to it.”
Despite Zoom’s damage limitation, the explanations given in the blog were still considered insufficient by numerous users. In particular, criticism was leveled at the fact that only administrators or the Zoom account holders who lead the meeting are allowed to decide on data usage. All other meeting participants would only be informed that AI-powered functions were being used. The only option left to them would be to leave the meeting if they didn’t want to support it – a hardly practicable solution if zoom meetings are a daily part of the work routine. An election, as TechCrunch author Natasha Lomas summarizes in her detailed analysis of the changed terms and conditions, looks different. Wired’s Damien Williams agrees: “Enforced consent is no consent at all,” as quoted by Salon.com.
180 degree rotation zooms
A few days after the uproar and Zoom’s attempt at an explanation, the company has now made a 180-degree turn. The video conferencing provider has once again updated its terms and conditions. It is now said that Zoom will not use any user data at all to train its generative AI models, as Variety writes. Specifically, Zoom’s published statement reads: “Following feedback on Zoom’s recently updated Terms of Service, particularly in relation to our new generative artificial intelligence capabilities, Zoom has updated the Terms of Service […] updated to clarify that Zoom does not use any of your audio, video, chat, screen shares, attachments, or other communications such as customer content (such as poll results, whiteboards, and reactions) to train Zoom or third-party artificial intelligence models.”
legal concerns
With this change, Zoom should now be on slightly less shaky ground from a legal point of view than after the first changes to the general terms and conditions. As TechCrunch author Lomas rigorously analyzes in an article, the European Union would have different privacy laws than the United States. The General Data Protection Regulation (GDPR) rigorously specifies the rights of someone whose data is being processed. In addition, there is the ePrivacy Regulation of the EU, which also provides a legal framework for electronic communication. The mere fact that the “Share user data” option is selected at the factory when activating the new AI functions and must be deselected manually constitutes a violation.
It remains to be seen whether the changes to Zoom’s general terms and conditions will have any legal consequences. Nevertheless, according to Alex Ivanos, who first drew attention to the problem with his article on Stack Diary, it is extremely worrying that such a change could be enforced in the first place: “It is a clear reminder for every brand and every company that is planning to further develop its product with AI by leveraging its own customer content.”
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