Balancing productivity and privacy: Safeguarding data in the age of AI-driven tools

Taking on repetitive tasks, providing insights at speeds far beyond human capabilities, and significantly boosting our productivity—artificial intelligence is reshaping the way we work, so much so that its use can improve the performance of highly skilled professionals by as much as 40%.

AI has already provided an abundance of useful tools, from Clara, the AI assistant that schedules meetings, to Gamma, which automates presentation creation, and ChatGPT—the flagship of generative AI’s rise. Likewise, platforms such as Otter AI and Good Tape, which automate the time-consuming transcription process. Combined, these tools and many others provide a comprehensive AI-powered productivity toolkit, making our jobs easier and more efficient—with McKinsey estimating that AI could unlock $4.4 trillion in productivity growth.

AI’s data privacy challenges

However, as we increasingly rely on AI to streamline processes and enhance efficiency, it’s important to consider the potential data privacy implications.

Some 84% of consumers feel they should have more control over how organizations collect, store, and use their data. This is the principle of data privacy, yet this ideal clashes with the demands of AI development.

For all their sophistication, AI algorithms are not inherently intelligent; they are well-trained, and this requires vast amounts of data to achieve—often mine, yours, and that of other users. In the age of AI, the standard approach towards data handling is shifting from “we will not share your data with anyone” to “we will take your data and use it to develop our product”, raising concerns about how our data is being used, who has access to it, and what impact this will have on our privacy long-term.

Data ownership

In many cases, we willingly share our data to access services. However, once we do, it becomes difficult to control where it ends up. We’re seeing this play out with the bankruptcy of genetic testing firm 23andMe—where the DNA data of its 15 million customers will likely be sold to the highest bidder.

Many platforms retain the right to store, use, and sell data, often even after a user stops using their product. The voice transcription service Rev explicitly states that it uses user data “perpetually” and “anonymously” to train its AI systems—and continues to do so even if an account is deleted.

Data extraction

Once data is used to train an AI model, extracting it becomes highly challenging, if not impossible. Machine learning systems don’t store raw data; they internalize the patterns and insights within it, making it difficult to isolate and erase specific user information.

Even if the original dataset is removed, traces of it will remain in model outputs, raising ethical concerns around user consent and data ownership. This also poses questions about data protection regulations such as GDPR and CCPA—If businesses cannot make their AI models truly ‘forget’, can they claim to be truly compliant?

Best practices for ensuring data privacy

As AI-powered productivity tools reshape our workflow, it’s crucial to recognize the risks and adopt strategies that safeguard data privacy. These best practices can keep your data safe while pushing the AI sector to adhere to higher standards:

Seek companies that don’t train on user data

At Good Tape, we’re committed to not using user data for AI training and prioritize transparency in communicating this—but that isn’t yet the industry norm.

While 86% of US consumers say transparency is more important to them than ever, meaningful change will only occur when they demand higher standards and insist any use of their data is clearly disclosed by voting with their feet, making data privacy a competitive value proposition.

Understand your data privacy rights

AI’s complexity can often make it feel like a black box, but as the saying goes, knowledge is power. Understanding privacy protection laws related to AI is crucial to knowing what companies can and can’t do with your data. For instance, GDPR stipulates that companies only collect the minimum amount of data necessary for a specific purpose and must clearly communicate that purpose with users.

But as regulators play catch up, the bare minimum may not be enough. Staying informed allows you to make smarter choices and ensure you’re only using services you can trust—Chances are, companies that aren’t adhering to the strictest of standards will be careless with your data.

Start checking the terms of service

Avoma’s Terms of Use is 4,192 words long, ClickUp’s spans 6,403 words, and Clockwise’s Terms of Service is 6,481. It would take the average adult over an hour to read all three.

Terms and conditions are often complex by design, but that doesn’t mean they should be overlooked. Many AI companies bury data training disclosures within these lengthy agreements—a practice I believe should be banned.

Tip: To navigate lengthy and complex T&Cs, consider using AI to your advantage. Copy the contract into ChatGPT and ask it to summarize how your data will be used—helping you to understand key details without scanning through endless pages of legal jargon.

Push for greater regulation 

We should welcome regulation in the AI space. While a lack of oversight may encourage development, the transformative potential of AI demands a more measured approach. Here, the rise of social media—and the erosion of privacy caused due to inadequate regulation—should serve as a reminder.

Just as we have standards for organic, fair trade, and safety-certified products, AI tools must be held to clear data handling standards. Without well-defined regulations, the risks to privacy and security are just too great.

Safeguarding privacy in AI

In short, while AI harnesses significant productivity-boosting potential—improving efficiency by up to 40%—data privacy concerns, such as who retains ownership of user information or the difficulty of extracting data from models, cannot be ignored. As we embrace new tools and platforms, we must remain vigilant about how our data is used, shared, and stored.

The challenge lies in enjoying the benefits of AI while protecting your data, adopting best practices such as seeking transparent companies, staying informed about your rights, and advocating for suitable regulation. As we integrate more AI-powered productivity tools into our workflows, robust data privacy safeguards are essential. We must all—businesses, developers, lawmakers, and users—push for stronger protections, greater clarity, and ethical practices to ensure AI enhances productivity without compromising privacy.

With the right approach and careful consideration, we can address AI’s privacy concerns, creating a sector that is both safe and secure.