Regulatory and safety concerns on X

As most of us have seen this week, the European Commission launched a formal investigation into X’s AI chatbot “Grok” following reports it produced sexually explicit deepfake images, with some going as far as involving minors.

The probe could lead to fines of up to 6% of global annual revenue and additional compliance measures. UK regulator Ofcom has also launched a separate formal investigation under the UK Online Safety Act for similar issues. 

Since Monday, U.S. regulatory pressure has also intensified. 37 state attorneys general have collectively urged xAI (the company behind Grok), to implement measures to reduce harmful content and to protect users, particularly women and minors.

Additional controversy includes criticism from UK government officials that current safeguards are insufficient, and reports that Irish ministers deactivated their X accounts over Grok deepfake concerns. Public figures and civil rights groups are also amplifying criticism of Grok’s bias and poor content moderation – and rightly so.

These developments suggest that brand safety, regulatory compliance and broader civil-rights criticisms are active and escalating risk areas for companies hosting Grok content.

Advertiser pullbacks and platform revenue trends

Data shows continued advertiser caution on X since Elon Musk’s takeover in October 2022. According to recent account filings, X’s UK revenues dropped significantly in 2024, following reduced advertising spend due to brand safety concerns.

While some major brands paused advertising around the time of the ownership transition, many of them never fully returned to previous levels of spending. There have not been any clear signals of returning brand spend in the latest reporting cycle, suggesting caution among advertisers continues.

User engagement and alternative platforms

Trends indicate X’s audience is shrinking when compared to competitors in the market. From late 2024 to October 2025, X’s estimated daily mobile users dropped by ~13%, while Meta’s Threads has grown rapidly and has now surpassed X in mobile usage globally, according to similarweb.

Image credits: similarweb

Platforms like Bluesky also saw spikes in users. e.g., adding ~1 million users shortly after the U.S. election, though its overall base remains smaller than X’s. 

According to PRWeek research, journalists are now posting more frequently on Bluesky than on X, reflecting a real shift in behaviour. That said, X still carries weight in professional circles, particularly for breaking news and political and financial discussion.

Despite this, X still retains the largest global user base overall and remains a key channel for real-time virality. 

What this means for corporate communications

X is not uniformly inappropriate for all companies. It still has reach and can be effective for visibility and real-time engagement, especially where audiences are active and relevant.

However, regulatory scrutiny and safety concerns (particularly around Grok and deepfake content) are intensifying across multiple jurisdictions, not just Europe and the UK. This increases the potential reputational and compliance risk for corporate communicators.

Companies should carefully consider whether content and engagement on X align with their level of risk tolerance, values, and governance frameworks.

Advertiser caution and shifting user behaviour mean some audiences and professionals are increasingly using alternatives like Threads and Bluesky. Having a presence or at least reserving a handle on these platforms can be a pragmatic hedge as the landscape continues to evolve.

TL;DR

• Grok AI investigation by EU and UK regulators continues, with an expanded scope and additional pressure from U.S. state attorneys general.
• Reduced advertiser spend and revenue pressures continue, with no clear rebound yet.
• User migration and engagement trends show Threads overtaking X in daily mobile usage and activity among journalists on Bluesky.

Our current recommendation?

Consider establishing a presence on Threads and Bluesky without fully abandoning X, based on your audience’s needs and overall brand strategy.

At a minimum, reserve handles to protect the brand as the landscape continues to evolve.