Is Your Data Safe with AI? What You Need to Know Before You Prompt

Introduction

You sit down to ask ChatGPT for help with a marketing campaign, but a nagging thought stops you—
“If I share my company’s details, who else can see this?”

That was exactly the concern raised in last week’s Open Office Hour. An attendee wanted to use ChatGPT to craft a marketing strategy but hesitated—how much internal data could they safely share? Would their company name, strategies, or proprietary details be stored, analyzed, or even used to train the AI?

These are valid concerns, and the answer isn’t always straightforward. AI tools are powerful, but not all AI models handle data the same way. In this post, we’ll break down:

✔️ How different AI tools store (or don’t store) your data
✔️ The key differences between free and paid AI versions
✔️ Simple steps to keep your data private while still using AI effectively

Let’s dive in.

What Happens to Your Data When You Use AI?

Many AI tools store user prompts, especially in their free versions, to help train future models. That means anything you type could be logged, analyzed, or even used to improve AI responses for other users.

However, some paid AI services and enterprise versions offer better privacy protections—often by disabling data storage and model training. But here’s where it gets tricky:

Not All AI Tools Use Their Own Models

Many AI-powered apps don’t actually have their own AI models—they rely on existing large language models (LLMs) like OpenAI’s ChatGPT, Anthropic’s Claude, or Google’s Gemini in the background.

For example:

• Castmagic.io (a podcast transcription tool) runs on ChatGPT.

• Microsoft Copilot also uses OpenAI’s models, though with enterprise-grade security layers.

Some tools clearly state what AI they use, but others don’t disclose it at all. That means your data could be processed by a third-party LLM without you realizing it.

Which leads us to the next big question:

How Do ChatGPT, Claude, Gemini, Grok, and Meta AI Handle Your Data?

Not all AI models handle your data the same way. Free versions often store prompts and may use them for model training, while paid and enterprise versions typically offer stronger privacy protections. Here’s a breakdown:

Google Gemini

• Free Version (Gemini Apps):

  • Collects chats, shared content, feedback, location, device logs, contacts, apps, and screen content (Android).

  • Saves activity for up to 18 months (user adjustable), with short-term retention (72 hours) even when history is off.

  • Uses collected data for AI training (with an opt-out available).

  • Human reviewers may read conversations (disconnected from user accounts).

• Paid/Workspace Gemini:

  • Data is classified as "customer data" and follows Google’s Cloud Data Processing Addendum (CDPA).

  • Not used for AI training outside the organization unless explicitly permitted.

  • Enterprise security features available (DLP, CSE, admin controls).

Anthropic Claude

• Free & Claude Pro:

  • Collects user inputs and conversation history (deleted after 30 days unless saved by the user).

  • Does not use user inputs for training by default (exceptions for Trust & Safety reviews, reported content, and opt-ins).

• Claude Enterprise, API & Claude for Work:

  • Data is NOT used for AI training by default.

  • Offers zero-retention options for qualified customers.

  • Enterprise-grade security, including SOC II Type 2 certification and HIPAA compliance.

OpenAI ChatGPT

• Free & Plus Versions:

  • Collects account info, user content (prompts, uploads, feedback), and geolocation data.

  • Users can opt out of model training via settings.

  • Temporary Chats feature prevents data storage (but must be enabled).

• API, ChatGPT Enterprise, ChatGPT Team, ChatGPT Edu:

  • Does not use customer data for training by default.

  • Deleted conversations are removed within 30 days (except when legally required).

  • Enterprise security includes SAML SSO, admin-controlled data retention, and compliance APIs.

Meta AI

• Free Version (Facebook, Instagram, WhatsApp AI):

  • Collects prompts, user activity, and data from Meta platforms.

  • Uses public posts (opt-out available) and licensed data for training.

  • WhatsApp interactions are NOT end-to-end encrypted when using Meta AI.

• Enterprise Features:

  • No specific enterprise privacy policies disclosed yet.

Grok (xAI - Elon Musk’s AI Model)

• Free Version:

  • Collects user prompts, social media activity, location, X (Twitter) posts (automatic opt-in).

  • Data may be used for training (opt-out available).

  • Temporary Chats delete content within 30 days (with some exceptions).

• Paid/Enterprise Grok:

  • Data is not used for AI training under enterprise terms.

  • Restricts disclosure to third parties and ensures customer input/output is confidential.

What’s the Best Option for Privacy?

✅ For personal use: Claude offers stronger privacy than most free AI models.
✅ For business use: ChatGPT Enterprise, Claude API, and Gemini Workspace provide the highest level of data security.
✅ Use with caution: Free versions of Gemini, ChatGPT, Grok, and Meta AI—assume data is stored and analyzed unless explicitly disabled.

What Simple Steps Can You Take to Keep Your Data Safe While Successfully Using AI?

Here’s a quick checklist to help you stay secure while still getting great AI-generated results:

✅ 1. Keep Prompts General – Avoid sharing company names, proprietary strategies, or personal data.
    ❌ “What’s the best marketing strategy for XYZ Inc.?”
    ✅ “What are the top marketing strategies for a mid-sized tech company?”

✅ 2. Check the AI Tool’s Privacy Policy – Does it store your prompts? Use them for training? Let you opt out?

✅ 3. Use Enterprise AI for Business-Critical Data – Stick with ChatGPT Enterprise, Claude API, or Gemini for Business if privacy is key.

✅ 4. Be Cautious with Third-Party AI Apps – Many AI-powered tools rely on external LLMs. If the tool doesn’t disclose its AI source, assume your data might be processed externally.

✅ 5. Use Self-Hosted AI for Maximum Security – For full control, consider self-hosted LLMs or open-source models like Google’s GEM (still in research).

✅ 6. Turn Off AI Chat History or Use Temporary Chats – Some AI tools allow you to disable chat history or use temporary chat mode:
    ✔️ ChatGPT and Grok offer temporary chats when history is turned off.
    ✔️ Gemini users have controls over their "Gemini Apps Activity"

✔️ Claude – Claude allows you to delete saved conversations and has a default 30-day deletion period for general interactions.

✅ 7. Assume Free AI Tools Store Data – If it’s free, your data is likely stored and analyzed.

✅ 8. Regularly Clear Your AI History (If Available) – If the tool allows it, delete past conversations.

Final Thoughts: AI Is Powerful, But Use It Wisely

AI can be an incredible assistant, but it’s up to you to use it securely.

By following these steps, you can leverage AI’s power while protecting your data—whether you’re brainstorming ideas, creating marketing plans, or using AI for business.

Want to learn more? Join my Open Office Hour this Friday for live AI discussions!