AI Glossary
What it means, why it matters to your business, and where it shows up in a real build decision.
Also known as PII
In plain terms
Personally identifiable information is any data that can identify a specific person, and data privacy is the practice of protecting it throughout an AI system. Feeding customer data into AI tools without controls is a common and serious exposure. Where data goes, how long it is kept, and who can see it must be settled before launch.
Feeding customer data into an AI tool without controls is like leaving a customer file open on a shared desk. The exposure is not intentional; it is structural, and that does not reduce the liability.
A company uses a consumer AI tool to summarize customer support transcripts. The tool sends those transcripts to a third-party model. When a GDPR review surfaces this, legal halts the tool immediately.
Map every data flow in your AI system before launch: what data enters, what model processes it, where it is stored, and who can access it. This is standard practice, not a compliance formality.
There is no context where personal data can flow through an AI system without a legal basis, retention policy, and access control. These requirements do not scale with project size.
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