Elon Musk's xAI told workers to download employee tracking software on their personal computers, prompting privacy concerns — and one worker's apparent resignation.
The AI startup told the tutors who train its Grok chatbot earlier this month that they would be expected to download a workforce management system called Hubstaff, according to a document viewed by Business Insider.
The tutors were initially asked to download the software onto their personal computers by July 11 if they did not have a company-issued device, according to the document and sources with knowledge of the issue that asked to speak anonymously as they were not authorized to speak on the company's behalf. They were told to enable access to screen captures, and were also told that using the software was mandatory.
After Business Insider reached out to xAI with questions about Hubstaff, xAI announced tweaks to the policy on Slack: Now, workers who requested company computers could wait to download the software until they receive a company-issued laptop.
It's unclear if employees who downloaded the software ahead of the July 11 deadline or purchased a new device would also be allowed to wait for an xAI computer to be shipped to them.
The company has said it will only use the system to monitor URL and application visits during designated work hours, according to the document. According to its website, Hubstaff can also track mouse movement and keystrokes.
"This new tool serves to streamline work processes, provide clearer insights into daily tutoring activities, and ensure resources align with Human Data priorities," the company's human resources team said in a mass email to employees.
Hubstaff would be used to gauge employee performance and gather data on how tutors perform research, according to the document.
A spokesperson for xAI did not respond to a request for comment.
Some workers spoke up with privacy concerns about the software, according to Slack messages viewed by Business Insider. One worker said they would resign due to the Hubstaff roll-out, according to a Slack message that received dozens of reactions appearing to support the post.
In the message, the worker wrote that it was "surveillance disguised as productivity" and "manipulation masked as culture."
Staff with concerns about data privacy on their personal computers had been told to either purchase a new computer using xAI's $50 per month tech stipend or create a separate log-in and profile on their device that would keep their work separate from any browsing in their personal time, according to the document.
The software, which requires workers to clock in and out, would not track activity on the laptop outside of work hours, the document said.
The company supplies some workers with company-issued Chromebooks, but many workers use their personal devices for the role, BI previously reported. In the lead up to the roll-out, tutors were initially told that the company had run out of Chromebooks, and it was unclear when they would be restocked, people familiar with the guidance told BI.
Other AI companies have used Hubstaff. In an ongoing worker lawsuit filed against Scale AI that alleged the company misclassified workers, a former employee said the company used Hubstaff to monitor data annotators and that they were required to download it onto their personal computers.
A spokesperson for Scale AI said that the company uses Hubstaff "to help contributors track the time they choose to spend on tasks, supporting accurate payment submissions."
David Lowe, an employment attorney who has brought cases against Musk-owned companies Tesla and X, told Business Insider that while worker surveillance tactics can pose some legal risks for the company, the nature of the risk often comes down to the company's reasoning for additional security practices, the amount of notice, and opportunities for reimbursement toward a separate device.
"It's a balancing test," Lowe said.
XAI could make a case that it has "an interest in trade secrets and ensuring employees are not violating privacy obligations," Lowe said. "The next step is to determine if there is a less intrusive way to accomplish that objective."
California, where xAI is headquartered, has some of the most stringent worker-protection laws, but many of the company's tutors are remote and would be governed by their region's labor laws, Camron Dowlatshahi, a Partner at MSD Lawyers in Los Angeles, told BI. He said it's best for the company to ensure the surveillance system is confined to work hours.
In addition to Hubstaff, xAI also uses the HR manager Rippling to clock workers' hours and its in-house system Starfleet, which tracks the amount of time tutors spend on each task and can monitor employees' actions within the site, BI previously reported.
It's been a chaotic week for xAI. It temporarily took its Grok chatbot off X after it posted a series of anti-semitic messages on Tuesday, and tutors took to Slack to respond, BI previously reported.
On Wednesday, Musk unveiled the latest version of Grok and a $300-per-month subscription plan for a more sophisticated version of Grok, called SuperGrok Heavy. Musk also said the company will be adding Grok capabilities to Tesla vehicles.
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