Social media giant Snap (NYSE: SNAP) was trending lower in pre-market trading on Friday after the UK’s data watchdog, The Information Commissioner’s Office (ICO), raised concerns that Snapchat’s ‘My AI’ chatbot could pose privacy risks for children.
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The ICO is investigating how ‘My AI’ handles the personal data of Snapchat’s 21 million UK users, including minors aged 13-17. According to a Reuters report, the chatbot could be banned in the UK if Snap fails to address these concerns adequately.
Snap commented on the ICO’s concerns, “My AI went through a robust legal and privacy review process before being made publicly available. We will continue to work constructively with the ICO to ensure they’re comfortable with our risk assessment procedures.”
Is SNAP a Good Buy Right Now?
Analysts remain sidelined about SNAP stock with a Hold consensus rating based on three Buys, 18 Holds, and three Sells.