Meta's New Mexico Legal Proceedings Could Create a Potential Trust Risk for Muse

Dow Jones01:25

1325 ET - A New Mexico judge's order that Meta pay $25 billion for misleading users about data-privacy practices remains a legal overhang for the company, and may impact its efforts to scale the Muse AI agent, Truist analysts say in a note. Meta is planning to appeal, while New Mexico intends to ask the judge to mandate changes to the company's platforms, leaving the final outcome unclear. But the unresolved proceedings may create a risk for Muse, the analysts say: "Trust is paramount to the success of personal agents; renewed scrutiny of Meta's handling of personal data is particularly relevant as it asks users to connect email, calendars, and payment methods, so this remains a risk worth monitoring."

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