Meta's controversial surveillance tool, which tracked staff's keystrokes, mouse clicks and content to train the company's AI models, didn't quite work out as planned. The Model Capability Initiative, which was implemented in April and strongly opposed by staff, has been paused following an incident in which employee data became accessible to the entire company.

Over the last several weeks, more than 1,600 Meta employees, including software engineers, research scientists and designers, signed a petition calling on the company to stop collecting and repurposing employee computer data. 

"We collectively believe that empowering individuals and communities through building responsible AI includes respecting their boundaries and privacy," the petition states. "Any approach to AI that relies on intrusive, coercive, non-consensual data collection contradicts that principle." 

Business Insider reported that the software tracked apps and programs such as Gmail, GChat and Metamate, an employee AI assistant, as part of its data collection. The data-tracking software also captured screenshots. It's unclear if it will be reinstated. 

Citing an internal security notice and information from three Meta employees, Wired reported that private conversations, prompts, transcriptions, and performance reviews were exposed to "anyone inside the company." 

In a statement obtained by Wired, a Meta spokesperson said the company was investigating the incident and would stop data tracking indefinitely. 

"We have carefully designed this program with privacy safeguards, and while we have no indication at this time that any data was improperly accessed by Meta employees, we're pausing it while we investigate," the spokesperson said.

A representative for Meta did not respond to CNET's request for comment. 

Employers ramp up AI use 

Meta, which is spending at least $135 billion on AI infrastructure this year, is among several major tech companies ramping up AI investment, including Amazon ($200 billion), Microsoft ($190 billion), and Alphabet ($185 billion).

Meta AI, the company's main chatbot, is integrated into its main social media platforms such as WhatsApp, Instagram and Facebook.

According to leaked audio from an in-house company meeting on April 30, Meta CEO Mark Zuckerberg said it made sense to use his own employees to train the AI.

"The AI models learn from watching really smart people do things... The average intelligence of the people who are at this company is significantly higher than the average set of people that you can get to do tasks," Zuckerberg said.

Rory Mir, director of open access and tech community engagement at the digital rights group Electronic Frontier Foundation, said Meta employees were right to oppose an invasive practice that raises privacy, consent, and trust concerns.

"Seeking new data for AI training is no excuse," Mir told CNET. "Such disproportionate monitoring of workers is an abuse of power and highlights the necessity of legislation to protect worker privacy by requiring consent and due process."

Companies are monitoring how much their employees use company AI tools in their daily work. CNBC reported in May that "almost every Fortune 500 is tracking overall AI usage" to determine whether workers are using it effectively and maximizing its potential.