What happens to your AI input data?
Every day, you enter sensitive data into AI tools – from pricing strategies and operational processes to customer and transaction data. This includes data such as charging sessions, tariffs, and billing information.
In many cases, it is not fully clear what happens to that data after you submit it. Depending on the provider, your data may be stored, processed, and sometimes used to improve the AI.
This creates risks around confidentiality, intellectual property, and competitive advantage- especially when sensitive business data such as pricing models, charging behaviour, or customer data is involved.
As AI adoption accelerates, one question is often overlooked: what happens to your data? For many organisations, the answer is not fully transparent – and that creates risk.
At Last Mile Solutions, we work daily with data that sits at the heart of our Partners’ commercial operations; charging sessions, tariffs, billing. That is why questions about how AI tools handle input data are not abstract for us, but part of how we think about trust, security, and responsible technology choices.
Where your data goes
Most AI tools run in cloud-based environments. This means your data is processed outside your organisation’s direct control. Depending on the provider, this may include:
- Storage on provider servers (temporary or longer-term)
- Use of data to improve or train AI models
- Potential sharing with third-party systems or partners
The main risk is loss of control over sensitive operational and commercial data. If your data is used for training, elements such as pricing strategies, operational processes, or customer insights may become part of the model’s knowledge base. This can reduce your ability to differentiate over time.
This does not mean your data is shared directly with other users. However, when input is used to train models, your competitive insights can become part of a knowledge base accessible to anyone using the same tool – including your competitors.
What this means for your business
For CPOs and MSPs, data is a core asset. It drives pricing, optimisation, customer experience, and revenue.
If this data is not properly controlled, it can:
- Reduce competitive advantage
- Create compliance risks
- Limit your ability to differentiate in the market
Understanding how AI tools use your data is therefore not just a technical issue – it is a business decision.
What the Terms of Use say
Most AI providers define how your data is used in their Terms of Use. These are often accepted without review, but they can include broad permissions. These permissions may include:
Example 1: “We may use Content to provide, maintain, develop and improve our Services, comply with applicable law, enforce our terms and policies, and keep our Services safe.”
Example 2: “By using the Tool, you grant us permission to use your content, which means we can copy, distribute, transmit, publicly display and perform, edit, translate and format it, and we may grant those same rights to others working on our behalf. We may decide whether to use Your Content, and we do not need to pay you, ask for your permission or inform you when we do so.”
In practice, this means providers may have significant control over how your data is used, while transparency and user control can be limited.
What the EU AI Act requires
The EU AI Act introduces requirements around transparency and user control. In practice this means:
- You must be informed about how AI systems use your data
- Providers must disclose if input data is used for training
- You must have control over how your data is used.
The AI Act does not prescribe how this must be done. In practice, most providers use opt-in or opt-out settings.
Your options: Opt-Out vs Opt-In
Opt-Out (most common)
Your data is used by default. You need to take action to prevent this.
Opt-In (preferable but less common): Your data is only used if you give permission
For example, some providers state: “If you do not want us to use your content to train our models, you can opt out by following the instructions in this article. Please note that in some cases this may limit the ability of our services to better respond to your specific use case.”
How to protect your organisation
To reduce risk, take the following steps:
- Review Terms of Use before using AI tools
- Check if your data is used for training and under what conditions
- Define what data employees can and cannot enter into AI tools
- Use opt-out settings where available
- Train employees on responsible AI use
- Consider enterprise agreements with stronger data protection
- Regularly audit AI tool usage across your organisation.
The Bottom Line
AI tools offer clear benefits. They also introduce new risks.
Your input data can become part of the system. That makes it essential to understand how your data is used – and to stay in control.
The question is not whether to use AI, but how to use it responsibly. Because the data you put in today may be the advantage you lose tomorrow.
Ilenia Lombardo
Head of Legal & DPO
Last Mile Solutions
