AI data privacy has quickly become one of the biggest concerns for businesses adopting tools like ChatGPT, Claude and Microsoft Copilot.
Last week, we shared a practical checklist to help businesses determine whether they were ready to adopt AI. We covered the importance of organised data, strong cybersecurity, clear processes and staff readiness.
But once you’ve established those foundations, another important question follows:
What actually happens to the information you put into AI?
Whether it’s ChatGPT, Claude, Microsoft Copilot or another AI platform, more employees are using AI every day to draft emails, summarise documents, brainstorm ideas and analyse information.
While the productivity benefits are hard to ignore, many business owners have the same concern:
“Should my team be sharing company information with AI tools at all?”
The answer isn’t quite as simple as yes or no.
Not All AI Platforms Handle Data the Same Way
One of the biggest misconceptions about AI is that every platform treats data in the same way.
In reality, privacy protections can vary significantly depending on the provider, the type of subscription you’re using and how the platform has been configured.
For example, enterprise-grade AI solutions often include stronger privacy controls and business agreements around how your data is stored and used. Consumer versions may have different terms and settings that businesses should carefully review before use.
That’s why understanding the tools your employees are using is so important.
Can Other People See What You Put Into AI?
Generally speaking, another random user cannot access the prompts, files or conversations you enter into AI platforms.
However, that doesn’t mean there are no risks.
The bigger concern is how information is being shared in the first place.
Imagine an employee copies a confidential proposal into an AI tool to help improve the wording. Or uploads a spreadsheet containing customer information to generate a report. Without clear guidelines, sensitive business data could end up being shared with platforms that haven’t been properly assessed or approved.
In many cases, the risk comes from user behaviour rather than the technology itself.
What Information Should Never Be Shared?
As a general rule, businesses should think carefully before uploading:
- Customer personal information
- Financial records
- Confidential contracts
- Employee records
- Intellectual property
- Sensitive business strategies
If you wouldn’t feel comfortable sending the information to an external third party, it’s worth pausing before sharing it with an AI tool.
A little caution can help prevent significant compliance, security or privacy issues later on.
Why Microsoft Copilot Often Raises Fewer Concerns
Many businesses are exploring Microsoft Copilot because it works within their existing Microsoft 365 environment.
This means Copilot can follow the same security permissions that already exist within the organisation. Employees can only access information they’re already authorised to see, helping businesses maintain greater control over their data.
While no technology is completely risk-free, platforms that integrate into existing security controls are often easier to govern than standalone public AI tools.
Your Business Needs an AI Usage Policy
As AI becomes more common in the workplace, having clear guidelines is becoming essential.
Employees should understand:
- Which AI tools are approved
- What data can and cannot be shared
- How customer information should be handled
- Security and privacy expectations
- When human review is required
Without these guardrails, employees may unintentionally expose information that should remain private.
Final Thoughts
AI has the potential to transform the way businesses operate, but it’s important to understand where your information is going and how it’s being used.
The good news is that AI isn’t inherently unsafe. The real risk comes from using it without the right policies, training and security controls in place.
As businesses continue to adopt tools like ChatGPT, Claude and Microsoft Copilot, the organisations that establish clear governance around AI will be the ones that gain the benefits while minimising the risks.
Before asking what AI can do for your business, it’s worth asking one simple question:
Are your employees using AI safely?