It is easy to treat AI like a magic black box: you put a prompt in, and a miracle comes out. But behind the scenes, there is a massive difference in how that box handles your data.
If you aren't distinguishing between Public and Private AI, you might accidentally be broadcasting your company’s trade secrets to the entire world. Here is what you need to know to keep your data under lock and key while still reaping the benefits of automation.
The Core Difference: Who Is Learning From You?
Most people think of AI as a tool they use, but with public models, you are actually a tool the AI uses to learn. Understanding the distinction between these two models is the first step in protecting your digital perimeter.
Public AI: The Crowdsourced Knowledge Base
Public models, like the free versions of ChatGPT or Google Gemini, are essentially learning in real-time.
- Data usage - Every prompt you enter is used to train the global model.
- Privacy - Because the AI learns from you, your proprietary information could potentially resurface in responses generated for other users—including your competitors.
- Cost and security - While these tools are often free or low-cost, they come with a high risk of accidental data breaches because they aren't designed for corporate confidentiality.
Private AI: The Walled Garden
Private or Enterprise-grade AI tools are built for the business world.
- Data usage - Your data stays within your organization's walled garden. The provider explicitly agrees not to use your prompts to train their public models.
- Privacy - Your secrets remain yours. The AI uses your internal data to help your team, but that information is never shared with the outside world.
- Cost and security - These versions usually require a subscription, but they offer the security and compliance features necessary for handling sensitive information.
The Reddit Rule: Why Public AI is a Risk
Think of using a public AI like posting on a public forum. If you ask a public model to summarize a confidential merger agreement or identify patterns in a patient's medical history, that information is now part of the AI’s permanent knowledge base.
The next time a stranger or a cybercriminal asks the right question, the AI might use your proprietary data to answer them. In the eyes of the law and your clients, that isn't just a mistake, it’s a data breach.
Your AI Playbook: Steps to Responsible Use
You don't have to ban AI to stay safe. You just need a strategy. Here are three ways to protect your business:
Upgrade to Enterprise
The simplest fix is to invest in the Pro or Enterprise versions of these tools. Most major AI providers offer tiers where they explicitly promise not to train their models on your data. It’s a small price to pay for a massive layer of security.
Implement an Acceptable Use Policy (AUP)
Don't leave it to guesswork. Your team needs a clear document that defines which AI tools are officially approved for company use, what kind of data—like PII or financial records—is strictly forbidden from being entered into any AI, and how AI-generated content should be labeled and verified.
Fact-Check Everything (The Hallucination Factor)
AI is designed to be a people pleaser. If it doesn’t know the answer, it might simply make one up that sounds incredibly convincing. This is known as hallucination. Always have a human expert review AI output for accuracy (did it invent a fact?), tone (does it sound like your brand?), and logic.
Don’t Let Innovation Compromise Your Security
AI is an incredible productivity booster, but it shouldn't come at the cost of your intellectual property. We can help you vet the right tools for your workflow and draft an AUP that keeps your team efficient and your data private.
Are you ready to build a smarter, safer AI strategy? Give us a call at (954) 575-3992 to get started.
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