AI tools have quietly become part of nearly every workplace. Marketing teams draft content with ChatGPT. Developers debug code with Copilot. Analysts summarize reports with Claude. The convenience is undeniable.
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But convenience does not eliminate risk.
Most major AI platforms have improved their privacy and security controls over the past two years. That’s good news. The bad news? Safe use still depends on your choices. It depends on the type of plan you’re using. And it depends on policies your organization may not have written yet.
This guide covers eight practical ways to reduce risk while still benefiting from AI at work.
1. Disable Conversation History and Activity Tracking
Many AI tools store your conversations by default. In the past, some providers used these interactions to improve their models. That raised understandable concerns, especially for businesses handling sensitive information.
Today, most platforms give you options. You can disable history. You can use private or temporary modes. You can limit how long your data is retained.
The catch? These protections are rarely enabled by default. They often differ between free and paid plans.
OpenAI’s ChatGPT, for example, lets you turn off model training in your Data Controls settings. You can also use “Temporary Chats” that delete automatically and are never used for training. But you have to know these options exist. You have to enable them yourself.
Google Gemini works differently. Privacy settings are tied to your broader Google account through “Gemini Apps Activity.” You can turn off activity saving, but even then, conversations may be retained for up to 72 hours. Conversations reviewed by human reviewers can be retained for up to three years.
The smart move: Review privacy settings for every AI tool you use. Disable conversation history or activity tracking when available. Do this especially on free or personal accounts, which typically have weaker default protections.
2. Choose Business Plans – But Configure Them Correctly
Consumer-grade AI tools are designed for general use. They work fine for experimentation. But they lack the controls that organizations need: administrative oversight, auditability, and formal data-handling assurances.
Business and enterprise plans typically provide:
- Data separation from consumer traffic
- Configurable retention policies
- Administrative controls for access management
- Options to opt out of model training on your data
Microsoft 365 Copilot, for instance, includes enterprise data protection by default. Your prompts and responses are not used to train foundation models. Data is encrypted, isolated between tenants, and subject to retention policies you control through Microsoft Purview.
Anthropic’s Claude offers similar protections through Claude for Work and Enterprise plans. API data is retained for only 7 days before automatic deletion. And Anthropic offers an optional Zero-Data-Retention addendum for organizations with strict compliance requirements.
The important point: Paying for a business plan is not enough. Many platforms require you to explicitly toggle off data use for training. You may need to enable specific privacy protections in account settings. If AI is part of your workflow, business-grade access with proper configuration is essential.
3. Never Input Confidential or Identifiable Information
Even with privacy controls enabled, treat AI tools as semi-public spaces. Sensitive data should never be entered.
This includes:
- Personal names and contact information
- Login credentials or API keys
- Financial or payment information
- Client data or customer records
- Proprietary business information
- Trade secrets or competitive intelligence
A good rule of thumb: if you would not publish it publicly, do not enter it into a chatbot.
This applies to file uploads, too. Documents often contain hidden metadata. They may include tracked changes, embedded comments, or revision history that you overlook. A “clean” document might reveal more than you intended.
Some organizations create sanitized versions of documents specifically for AI use. Others establish clear policies about what categories of information can never be shared with external AI systems. Both approaches work. Having no policy does not.
4. Actually Review the Privacy Policy
Yes, really. It matters.
AI providers differ significantly in how they handle your data:
- Where it is stored: Some providers offer regional data residency. Others process everything in the United States, regardless of where you are.
- How long it is retained: Retention periods range from 7 days to 5 years, depending on the provider, plan type, and your settings.
- Whether it is shared: Third-party subprocessors, cloud hosting providers, and integration partners may have access to your data.
- Whether it is used for training: Consumer plans often train on your data by default. Enterprise plans typically do not.
The Anthropic Privacy Center is a useful example of transparent documentation. It clearly explains retention periods, training policies, and the differences between consumer and commercial accounts.
Understanding these details is critical for aligning AI tools with your organization’s risk tolerance. It is also necessary for meeting compliance obligations. Skipping this step is one of the most common mistakes organizations make with AI adoption. It is also one of the costliest when something goes wrong.
5. Sanitize and Generalize Your Prompts
When working through real-world business scenarios with AI, remove identifying details first.
Instead of: “Draft a response to John Smith at Acme Corporation about the contract dispute in Chicago…”
Try: “Draft a response to a client contact about a contract dispute in a major metropolitan area…”
Replace real names with neutral placeholders like “Client A” or “Organization B.” Remove specific dates, locations, and financial figures when they are not essential to getting a useful response.
You will get the same value from the AI. You will dramatically reduce your exposure risk.
This habit alone can meaningfully improve your security posture. It costs nothing. It takes seconds. And it becomes automatic with practice.
Some teams create prompt templates with placeholder fields built in. Others train staff to mentally review prompts before hitting enter. The method matters less than the consistency.
6. Secure AI Accounts Like Any Business System
AI platforms should be treated as critical business software. Not casual apps. Not personal tools that happen to be used for work.
At a minimum, every AI account should have:
- Strong, unique passwords: Generated by a password manager, not reused from other accounts
- Multi-factor authentication: SMS is acceptable. Authenticator apps or hardware keys are better.
- Restricted administrative access: Not everyone needs admin privileges
- Regular permission reviews: Who has access? Do they still need it?
Weak account hygiene is one of the fastest ways to turn a helpful tool into a security liability. An attacker with access to your AI account can see your conversation history.
They can see the documents you have uploaded. They can see the prompts you have crafted – which may reveal your business strategies, pain points, and internal processes.
The Google Gemini Privacy Hub includes guidance on securing your account and managing activity. Similar resources exist for other major platforms. Use them.
7. Know Where Your Data Lives
For many industries, data residency and regulatory compliance are not optional. They are legal requirements with serious consequences for violations.
Before approving any AI tool for organizational use, confirm:
- Where data is processed and stored: Is it in your jurisdiction? Does it cross international borders?
- Which subprocessors have access: Cloud providers, third-party integrations, and support personnel may handle your data
- Regulatory alignment: Does the tool support GDPR? HIPAA? SOC 2? CMMC? Your industry’s specific requirements?
Microsoft 365 Copilot, for example, is compliant with GDPR and respects EU Data Boundary requirements. Google Workspace with Gemini allows customers to control whether data is stored and processed in the EU or the US. But these options must be configured. They are not automatic.
Unmonitored AI use – often called “shadow IT” – can quietly introduce serious compliance risks. An employee using a free AI tool for work tasks may not realize they are sending customer data to servers in a different country. By the time anyone notices, the damage may be done.
8. Log Out – Especially on Shared Devices
This one is simple. It is often overlooked.
Logging out of AI platforms prevents the next user on a shared or public device from accessing your session. They cannot see your conversation history. They cannot continue your chats. They cannot access your account settings.
Small habits prevent surprisingly large problems.
If you use AI tools on shared workstations, public computers, or borrowed devices, log out when you are done. Every time. No exceptions.
Set AI Security Policies Before Problems Appear
AI tools are spreading across every department in every organization. Marketing uses them. Sales uses them. HR uses them. Engineering uses them. Finance uses them.
Waiting to define rules until after an incident occurs is too late.
Organizations should:
- Establish clear AI usage guidelines: What tools are approved? What data can be shared? What use cases are prohibited?
- Train employees on responsible use: Most security failures come from ignorance, not malice
- Standardize on approved platforms: Business-grade tools with proper administrative controls
- Document and communicate policies: Written guidelines that people can actually reference
We have been through this evolution before. Mobile devices disrupted traditional security perimeters. Cloud services moved data outside corporate networks. Each time, organizations that planned fared better than those that reacted to crises.
AI deserves the same attention. The tools are too powerful and too widely adopted to ignore. With the right policies and practices, they can be productivity multipliers. Without them, they become risks waiting to materialize.
The choice is yours. But the time to make it is now.
This post provides general guidance and does not constitute legal or compliance advice. Consult appropriate professionals for your specific situation.
