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Explore ChatGPT privacy risks and data policies. Learn what businesses should watch out for and discover secure alternatives.

David Knichel
May 10, 2025
Businesses look to use the latest AI technology to improve efficiency and stay competitive. They don't want to be left behind.
OpenAI's ChatGPT is the most widely used AI chatbot known for its advanced features and AI capabilities. Yet, many businesses hesitate to enter business or personal data into ChatGPT because of privacy concerns:
This article explores these concerns and examines AI services designed for security and privacy.
Yes, it does. OpenAI uses Microsoft Azure to process and store data, saving conversations on their servers. OpenAI claims to remove deleted or unsaved chats within 30 days. Starting in February 2025, OpenAI will let Enterprise customers store their data in European data centers, making it easier to follow regulations like GDPR.
OpenAI is not in the business of selling user data. Their FAQ and privacy policy state that user content isn't shared for marketing or advertising purposes. However, beyond indirect data sharing with their infrastructure provider, they may also share data with:
So, while ChatGPT does not share data for marketing, it is not entirely clear who may access user information.
AI models improve by learning from data. If they are trained on user data, they may retain that information, potentially allowing third-party users to access it later. This raises concerns about whether ChatGPT learns from user inputs.
OpenAI claims its Enterprise GPT products won't train on user data unless explicitly opted in. For ChatGPT users with Free, Plus, and Pro subscriptions, training on user data is the default. However, users have the option to opt out.
OpenAI uses encryption to protect data at different stages:
However, OpenAI does not provide details on how they manage encryption keys or who can access them.
OpenAI is committed to taking extensive security measures against unauthorized access to user data. Their team passed a SOC2 Type 2 audit and runs a bounty program to encourage finding security bugs. SOC 2 (Service Organization Control 2) is a security framework that assesses how well a service provider protects customer data.
That said, the ChatGPT privacy policy leaves some questions unanswered. It's unclear who concretely has access to chat data and how access might change over time.
The answer to "Is ChatGPT safe for confidential information?" comes down to trust. You must trust OpenAI to protect your data strictly and follow their privacy and security policies once you enter messages into ChatGPT. You have no way of verifying:
While OpenAI is not in the business of selling data, it is in the business of providing knowledge and intelligence. And both get improved by training. The more data they use for training, the better their models become. This creates a strong incentive to collect as much information as possible and incorporate it into training.
Given these uncertainties, businesses handling sensitive information remain cautious about ChatGPT privacy and security. They usually see local AI setups as their only secure alternative.
Some businesses have started running AI models on their own servers. On-premises solutions improve data protection and privacy while reducing compliance risks (e.g., GDPR, HIPAA). But they also come with challenges:
Many businesses are not able to deal with these hurdles. Be it because of financial constraints or a lack of in-house expertise. What they need is an easy-to-use AI cloud service with unquestionable privacy and data protection.
Privatemode offers data confidentiality without the infrastructure costs of a local AI. It offers an AI chat that puts user privacy first. It provides similar AI capabilities to ChatGPT but with security that matches on-premises solutions. Privatemode applies Confidential computing, a novel technology that provides security assurances rooted in specialized hardware. Users no longer need to trust the service or infrastructure provider.
With Privatemode, you finally have a confidential AI Chat or API that enables you to:
All without the hassle of setting up and maintaining on-premises solutions. And you still get access to the latest AI models.
You can try Privatemode for free for 14 days. Privatemode also offers developers an API with the same security and privacy features.
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