Clearview AI, a face recognition firm, settled an Illinois complaint alleging privacy violations due to its massive facial picture collection for over $50 million, according to attorneys.

Plaintiffs in the federal litigation receive unusual compensation for a portion of Clearview AI's future worth. The settlement allocates $20 million for attorneys' costs.

On Friday, Judge Sharon Johnson Coleman of the Northern District of Illinois approved the settlement, combining complaints from across the United States accusing Clearview of using social media and other online images to create a database that other companies marketed.

In a 2022 Illinois settlement, Clearview agreed to stop selling database access to private groups but will continue to work with federal agencies and local law enforcement outside Illinois, where digital privacy rules are tighter.

Clearview AI Settlement a 'Creative Solution' But Does Not Address the Root Problem

In the current settlement, Clearview AI has not admitted wrongdoing. Clearview AI attorney James Thompson said that the firm is "pleased to have reached an agreement in this class action settlement," according to a report from AP News.

Jon Loevy, the lead plaintiffs' attorney, called the agreement a "creative solution" needed by Clearview's finances. Loevy stressed that affected people might benefit from Clearview's activities and regain some control over their biometric data.

The settlement applies to US residents whose photographs or data Clearview AI has stored since July 1, 2017.

The settlement requires a countrywide outreach campaign to alert potential litigants. Retired federal judge Wayne Andersen emphasized Clearview AI's financial inability to pay a large court judgment during negotiations.

Privacy activists and plaintiffs have criticized the deal. Sejal Zota, legal director for Just Futures Law, representing plaintiffs in a California complaint against Clearview AI, criticized the settlement for not addressing privacy violations and corporate operations.

Zota remarked that the agreement does not resolve "the root of the problem. Clearview may continue capturing and selling faces without consent and training its AI tech."

The settlement is a landmark in biometric privacy rights and face recognition ethics lawsuits, per the report.

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Experts Raise Concerns on AI Privacy

AI monitoring and surveilance are some of the serious issues as artificial intelligence technology continues to develop. Law enforcement uses facial recognition to follow suspects in public settings. This raises concerns about privacy and technology misuse.

To safeguard privacy, experts advise that AI must comply with the GDPR while collecting, using, and processing personal data. AI algorithms should limit personal data collection and processing while maintaining data security, according to a report from the Economic Times.

AI's ability to analyze large amounts of data allows unparalleled individual surveillance, including tracking movements, social media interactions, and biometric data like facial expressions. Moreover, the article noted that AI systems may also propagate prejudices and discrimination, raising concerns. Training data can bias AI systems, affecting hiring decisions.

Responsible AI technology development and deployment are needed to address these issues, per tech experts. Transparent and secure data collection and processing give individuals control over their data. AI systems must also be rigorously designed and tested to discover and prevent biases. Ethical and equitable AI applications require constant monitoring and control.

Gary Grossman, the Edelman EVP of Technology Practice and worldwide lead of the Edelman AI Center of Excellence, stressed in his article on VentureBeat the uncertain future of AI, combining possible positives with serious threats. To guarantee AI benefits society, he advocated informed discourse, ethical development, and proactive supervision.

He noted that "responsible AI development" is crucial as society navigates "this rapidly evolving landscape."

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