Advanced ML products are forbidden[0] to export to many places, so those who skimp on KYC are playing with fire. Paid products do not have this issue since you provide a billing address, but there is no good, free, and legal LLM that does not use a reliable way of verifying at least user’s location.
Whether they are serious about it or use it as an excuse to collect more PII (or both/neither), collecting verified phone numbers presumably allows them to demonstrate compliance.
> but there is no good, free, and legal LLM that does not use a reliable way of verifying at least user’s location.
In the US, other locations may/may not have the same export controls. Base your AI business in one of the non-US countries and it'll be legal to not keep strict controls on who is using your service.
Whether they are serious about it or use it as an excuse to collect more PII (or both/neither), collecting verified phone numbers presumably allows them to demonstrate compliance.
[0] https://cset.georgetown.edu/article/dont-forget-the-catch-al...