The Enterprise AI Privacy Debate Is Asking the Wrong Question

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Generative AI does not automatically create a new category of data risk. Like any cloud service, the risk depends on what the provider does with the data. What changes is the diversity of information we may unknowingly concentrate in a single external service.

Discussions about artificial intelligence and privacy often begin with a dramatic assumption: every time information is entered into an AI system, that information becomes part of the model.

The prompt is supposedly absorbed, broken apart and permanently incorporated into the model’s mathematical weights. Removing it would then require expensive machine-unlearning techniques. In the worst version of this argument, a confidential document uploaded today might somehow influence an answer delivered to a competitor tomorrow.

This is a powerful narrative.

It is also usually wrong.

It confuses using a model with training one.

During inference, a model processes the information provided to generate an output. That does not mean...

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