Data privacy concerns around public AI tools like ChatGPT have become a critical issue for businesses. When you upload confidential information to a public LLM (Large Language Model), you may be exposing sensitive data to third parties and violating legal obligations. In this article, we’ll explore the data privacy risks, legal implications, and best practices for using AI tools responsibly in your business.
Uploading confidential information to a service like ChatGPT generally constitutes a disclosure to a third party (OpenAI), which can violate confidentiality obligations depending on the context, such as non-disclosure agreements (NDAs), employment contracts, or legal requirements for protecting sensitive data. Here’s a breakdown of why this is often the case, based on how such AI services handle data:
1. Data Handling by the AI Provider
- When you input data into ChatGPT, it is transmitted to OpenAI’s servers, stored for periods like up to 30 days for temporary chats (for safety and moderation purposes), and potentially used to improve their services or train models unless you explicitly opt out.
- This means the information is no longer solely under your control and could be accessed by OpenAI employees, vendors, or affiliates for operational reasons.
- Even with opt-outs for model training, the act of uploading itself is a form of sharing with a third party, which may breach confidentiality if the information is protected (e.g., trade secrets, client data, or personal identifiable information).
2. Legal and Ethical Risks
Under NDAs or Contracts
- If the information is covered by an NDA, sharing it with an AI tool like ChatGPT typically violates the agreement because it’s an unauthorized disclosure to an external entity.
- This applies to employee scenarios where company policies prohibit such sharing.
Privacy Laws and Data Privacy Compliance
- For data like personal health information (e.g., under HIPAA in the US) or EU GDPR-protected data, uploading could lead to non-compliance, as AI services aren’t inherently secure for such purposes and may result in unintended exposure.
- Data privacy regulations require businesses to maintain control over personal data, which becomes difficult when shared with third-party AI platforms.
Professional Obligations
- In fields like law or medicine, inputting privileged or confidential client data risks waiving privilege or breaching ethical duties.
General Data Privacy Risks
- Data leaks have occurred in AI systems, and even without malice, features like shared chats or integrations could expose information.
- Studies show that confidential data is frequently pasted into tools like ChatGPT, leading to potential leaks hundreds of times per week in average companies.
3. Exceptions and Mitigations
- If the information is your own non-sensitive data with no external obligations, uploading might not technically “violate” confidentiality in a legal sense, but it’s still risky due to potential data breaches or future policy changes.
- Enterprise versions of AI tools (e.g., ChatGPT Enterprise) often have stronger privacy controls, like no training on your data, which reduces data privacy risks compared to consumer versions.
- Always review the AI service’s terms and privacy policy before uploading anything. For ChatGPT, opt out of data usage for training via their settings, but this doesn’t eliminate all disclosure risks.
In Summary
Yes, you are likely violating confidentiality by uploading such information to a public AI like ChatGPT, as it involves disclosing it to a third party without guaranteed protections.
Consult a legal professional for advice specific to your situation, and consider anonymizing data or using self-hosted AI alternatives if possible.
Protecting Customer Data with a Secure CRM
For businesses that handle customer data, maintaining data privacy is essential for compliance and customer trust. A dedicated CRM software solution offers several advantages over public AI tools for managing sensitive information:
- Data Control: Your customer data stays within your control, not shared with third-party AI providers.
- Compliance Features: Built-in tools for managing consent, data retention, and privacy preferences.
- Secure Communication: Send email marketing campaigns directly from your CRM without exposing data to external platforms.
- AI Integration Done Right: The Nexi AI assistant in SalesNexus is designed to help your sales team without compromising customer data privacy.
- Audit Trails: Track who accessed what data and when for regulatory compliance.
Learn more about how sales CRM solutions can help your team work efficiently while maintaining strict data privacy standards.
Podcast discusses using confidential information with AI models – 8min
https://podcasts.apple.com/us/podcast/ai-in-regulated-industries-ai-agents-ai-training-when/id1548733275?i=1000729691423