Data Privacy Day 2026: When AI Knows Your Business Better Than You Do

AI tools are everywhere in 2026. But where is your business data going when you use them? Data Privacy Day is a good time to ask uncomfortable questions.

Happy Data Privacy Day 2026. This year, the conversation has shifted.

12 months ago, we were still figuring out whether to use AI tools at all. Now they're embedded in everything - email drafting, document analysis, customer service, code review. The question isn't whether to use AI; it's whether you understand where your data goes when you do.

The AI Data Question

Every time you paste text into an AI tool, you're sharing data. Sometimes with clear terms. Sometimes... less clear.

Questions every business should answer:

• Which AI tools do your staff use? (All of them, not just the official ones)
• What data are they pasting into those tools?
• Where does that data go? Which country? Which company?
• Is it used to train future models?
• How long is it retained?
• Can you get it deleted?

If you can't answer these questions, you have a data governance problem.

The Shadow AI Problem

Your official policy might say 'use Microsoft Copilot.' But what are people actually using?

• ChatGPT (personal accounts)
• Claude (personal accounts)
• Free AI summarisers they found on Google
• AI features in tools you've never approved

Each of these has different terms. Different data handling. Different risks.

What Good Looks Like in 2026

1. An AI acceptable use policy

Not 'don't use AI' - that ship has sailed. But clear guidance on:

• Approved tools and how to access them
• Data that should never be pasted into AI (customer PII, financial data, credentials)
• How to evaluate new AI tools before using them

2. Enterprise-grade AI tools

Microsoft Copilot, for example, processes data within your Microsoft tenant. It doesn't use your data to train public models. It inherits your existing access controls.

This is very different from pasting sensitive data into a free consumer tool.

3. Regular audits

What AI tools are actually in use? Browser extensions. Desktop apps. Web apps. Mobile apps. You can't govern what you don't know exists.

The GDPR Angle

Using AI tools with customer data creates GDPR implications:

• Are you disclosing AI processing in your privacy policy?
• Do you have a legal basis for sharing data with AI providers?
• Can you fulfil subject access requests that include AI-processed data?
• What happens if the AI provider suffers a breach?

Most businesses haven't updated their data protection thinking for AI. 2026 is the year to catch up.

Your Data Privacy Day Homework

1. Survey your team. What AI tools are they actually using?
2. Review the terms. Where does data go for each tool?
3. Update your policies. Reflect reality, not wishful thinking.
4. Enable enterprise tools. Give people approved alternatives to consumer AI.

Need help figuring out AI governance for your business? We're helping clients navigate this.

Talk to us about AI data security