AI tools have become part of our everyday lives, helping us with everything from drafting emails to planning trips. But have you ever wondered what actually happens to the information you put into AI? It turns out most of us have, as one survey found 90% of people worry about AI using their data without consent.
But what happens to your data ultimately depends on the AI service you use. Some tools can store prompts, conversations and uploaded files to help improve their services. But others have extra privacy settings or business-grade protections to help keep sensitive information more secure.
We’ll take you through how AI handles your data and how to use these tools safely and confidently.
How do AI tools use your data?
When you use an AI chatbot, the data you put in helps it understand what you're asking and generates a relevant response. The information you enter is called a prompt. Common prompts include questions, instructions, uploaded documents or images. So if you upload a document and ask for a summary, it needs to process what’s in that file before it can help.
Some AI tools use your conversation history to give you more personalised responses. For example, services like Microsoft Copilot store your chats in your account so you can read through past conversations and pick up where you left off. With some AI tools, you can turn chat history off or delete previous conversations in your account settings.
If you're new to Microsoft's AI tools, check out our guide to What is Microsoft Copilot? for more info.
What information might AI platforms collect?
The exact information collected varies between tools, but most AI services gather some combination of:
Prompts, questions and conversations.
Uploaded documents, images and files.
Account information, such as your name and email address.
Preferences and settings, such as your language or how you’d like the tool to work.
Device and operating system information, such as what device you're using and which software it's running.
Usage and performance data, such as the features you use and any technical issues encountered.
Feedback submitted to improve the service.
But not everything AI collects can be used to identify you. Some data, such as your name and email address, can be linked to you directly. However other information, like device details, may be used to troubleshoot issues and keep the service running smoothly.
What happens to your data after you enter it into an AI tool?
Once you hit send, your input is processed to generate a response. Where it goes next depends on the provider. Your data may be stored temporarily, kept as part of your chat history or deleted after a set period.
Some store conversations on their servers for a set period, while others let you delete your history. Business services often keep data for less time and offer tighter controls to help protect sensitive information.
Different AI providers have their own approach to data storage and retention. So it's worth reviewing their privacy policy before sharing sensitive information.
Is your data used to train AI models?
Sometimes, yes. Some AI providers may use prompts and user data to help improve future versions of their models. The AI behind many of these services is powered by large language models (LLMs). Find out more in our guide to What is an LLM and how does it work?
However, many models now offer settings that let you opt out of this type of data sharing. Consumer AI tools are more likely to use customer interactions to improve their services. Business plans often provide stronger controls over how data is used. If you're concerned about privacy, check the provider's settings to see whether your chats can be used to improve AI services, and opt out where possible.
How do AI companies protect your information?
Most AI providers use multiple layers of security to help protect your data.
These can include:
Encryption to protect information when it's stored and shared.
Access controls that restrict who can view data.
Secure cloud systems and data centres.
Monitoring tools that help spot unusual activity.
Measures designed to meet privacy and data protection laws.
While the level of protection varies between providers, security and privacy are a key part of how modern AI services function.
What are the biggest privacy risks when using AI?
One of the biggest risks is sharing too much information. It's easy to paste personal details, financial information or confidential work documents into an AI tool without realising.
Another risk is assuming all AI services handle data the same way. Privacy settings, storage policies and security measures can vary between providers, so it's important to check how your information is being used.
The good news is that most risks are avoidable. Knowing how an AI service handles your data can help you decide what you're comfortable sharing.
How can you protect your data when using AI?
A few simple habits can make a big difference:
Avoid sharing passwords, bank details or sensitive personal information.
Remove names, account numbers and other personal details from documents where possible.
Review privacy settings and data-sharing options.
Check how the provider stores and uses your data.
Use business-grade AI tools when handling work information.
Only upload documents that are necessary for the task.
Treat AI tools like any other online service: think carefully about what you share and who you're sharing it with.
Tech tip: Before pasting a prompt, swap your real names, addresses and numbers for placeholders like [NAME] and [POSTCODE]. Fill them back in once you’ve got your answer. This keeps your personal data out of the system entirely.
Is on-device AI better for privacy?
Often, yes. On-device AI processes information on your laptop, smartphone or tablet instead of sending it to the cloud. That means some data can be processed without leaving your device.
Many modern AI laptops include a dedicated Neural Processing Unit (NPU), which is a specialised chip designed to handle AI tasks locally. This allows AI features to run directly on your device rather than relying on a cloud service.
Cloud-based AI can usually tackle more complex tasks thanks to greater computing power. But if privacy is important to you, an AI laptop can help keep more of your data local while still giving you access to powerful AI features.
Is AI a threat to privacy?
Not necessarily. What matters most is what happens to your data after you share it. That's why it's important to understand how an AI tool handles your information and what privacy controls are available. Many business-focused AI services also offer additional security and data protection measures compared to consumer tools.
To learn more about the technology behind these tools, take a look at our guide to What is generative AI?
Should you be worried about using AI?
For most people, no. AI can be a useful tool for work and everyday tasks. Like any online service, it comes with privacy considerations, but that doesn't mean you should avoid using it.
The key is understanding what information you're sharing and what happens to it afterwards. A little awareness can go a long way towards helping you use AI confidently and safely.
FAQs
Does AI keep your data private?
It depends on the provider and your settings. Many offer privacy controls and encryption, but always check the policy and switch off data sharing for training if you’re concerned.
How to use AI without giving your data?
Use on-device AI where possible, anonymise anything you type and avoid uploading sensitive files. Paid plans often include stronger privacy guarantees than free ones.
What is the safest AI to use?
There’s no single safest option, but business and on-device tools generally offer the strongest protections. Look for transparent providers.
What to be careful of when using AI?
Avoid sharing personal or confidential information. If you're unsure whether something is sensitive, it's best not to paste it into an AI tool.
