AI-driven chatbots like ChatGPT, Google Gemini, Microsoft Copilot, and DeepSeek are rapidly transforming the way small to medium-sized businesses (SMBs) operate. From drafting professional emails to managing budgets and even streamlining daily operations, these intelligent assistants are becoming indispensable tools for business owners.
But as these AI-driven tools weave themselves into our daily routines, questions about data privacy and security are becoming harder to ignore.
What happens to the data you share with them, and are you unknowingly putting your business at risk?
These chatbots are constantly active, listening, and gathering data about you, some quietly, others less so, but rest assured, they're all collecting your information.
Let's take a closer look at how chatbots handle your data.
When you interact with AI chatbots, the data you share doesn't simply disappear after your conversation ends. Instead, these chatbots collect, store, and utilize this information, raising important considerations about privacy, security, and compliance.
1. Data Collection
Every time you type a question or request into a chatbot, it processes that input to generate useful responses. Often, this includes sensitive or proprietary business information, details you probably wouldn’t casually share with others.
2. Data Storage
Not all chatbots treat your data the same way. Here’s a quick overview of some of the most popular platforms:
ChatGPT (OpenAI):
Captures your input prompts, device info, location, and how you interact with the tool.
May share this data with third-party vendors to improve their services.
Microsoft Copilot:
Goes a step further, collecting not just your interactions with the chatbot but also your browsing history and activities in other apps.
This information can be shared with vendors, used to personalize ads, or to train AI models.
Google Gemini:
Logs your conversations to help improve Google products and machine learning technologies.
Humans may review your interactions, and the data can be retained for up to three years, even after deletion. Although Google claims they don’t currently use your conversations for targeted advertising, privacy policies can (and do) change.
DeepSeek:
Arguably the most invasive, DeepSeek records your prompts, chats, location data, device details, and even your typing patterns.
This data helps train AI, enhance user experience, and craft targeted advertisements based on your behavior. Important to note: all this data is stored on servers located in China, raising additional security and compliance concerns.
3. Data Usage
Generally, companies use your conversations to refine the chatbot’s responses, enhance user experiences, and train advanced AI models. But this brings up concerns about consent, the security of your data, and how it's managed.
Without proper precautions, your business might inadvertently expose itself to multiple cybersecurity threats:
Privacy Issues: Sensitive information shared with chatbots might reach unintended audiences such as developers or third-party vendors. Microsoft Copilot, for instance, has already faced criticism for potential data exposure risks due to overly broad permissions. (Concentric)
Security Vulnerabilities: Chatbots can be targeted by cybercriminals. Researchers have demonstrated ways that bots like Microsoft Copilot could be misused to perform attacks such as spear-phishing or data theft. (Wired)
Regulatory Compliance Violations: Chatbots that collect and store data without adequate controls could put you in breach of regulations like GDPR, HIPAA, or GLBA. Companies have already begun limiting the use of tools such as ChatGPT to avoid compliance headaches and potential legal consequences. (The Times)
Navigating these challenges doesn’t mean you have to abandon chatbots altogether. Instead, adopt a smarter, informed approach:
Be Thoughtful With Sensitive Information:
Train your team to avoid sharing confidential or personally identifiable information (PII) unless you're fully confident in the chatbot's data handling practices.
Read (and Understand) Privacy Policies:
Take a moment to familiarize yourself with each chatbot provider’s privacy practices. Some platforms, like ChatGPT, offer specific settings that let you limit how your data is collected and used.
Use Available Privacy Tools:
Platforms like Microsoft Purview offer built-in privacy and compliance controls, giving your business greater oversight and protection when using AI-driven tools. (Microsoft Learn)
Stay Up-to-Date:
Policies and regulations evolve rapidly. Regularly reviewing updates from your chatbot providers ensures you're informed about changes that may impact your business's data privacy and compliance status.
AI-powered chatbots offer tremendous productivity advantages, making it tempting to overlook the potential risks. However, responsible usage means understanding exactly how your business's data is collected, stored, and utilized by these tools. By staying informed and implementing proactive privacy measures, you can harness the benefits of AI while protecting your business's critical information.
Want to ensure your business stays secure in an evolving digital landscape? Start with a FREE Network Assessment to identify vulnerabilities and safeguard your data against cyberthreats.
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