Artificial intelligence chatbots like ChatGPT, Google Gemini, and Claude have become integral tools in our daily lives—from writing assistance and research support to customer service and business productivity. These applications offer genuine value, but they also come with important privacy considerations that many users don't fully understand. This article will help you navigate AI tools responsibly, ensuring you benefit from their capabilities without compromising your personal security.
The Real Benefits of AI Chatbots
When used appropriately, AI chatbots deliver tangible advantages. They can significantly accelerate content creation, helping users draft emails, articles, and creative writing in a fraction of the time. For research and learning, these tools provide instant access to information and can explain complex topics in accessible language. Professionals use AI assistants to improve coding efficiency, streamline administrative tasks, and enhance productivity—with studies showing users can save approximately 3% of their time on tasks.
Beyond individual use, businesses leverage chatbots for 24/7 customer support, automating responses to frequently asked questions, assisting with data analysis, and handling routine transactions. Whether you're a student seeking clarification on difficult subjects, a professional managing multiple projects, or someone exploring new ideas, AI chatbots provide accessible, instant assistance without the need for human intermediaries.
The Critical Data Privacy Issue: What Happens to Your Information
Here's what many users don't realise: every question, request, or piece of information you share with an AI chatbot is sent to the AI provider's servers and may be used to train future versions of their models.
When you interact with ChatGPT or similar tools, that data doesn't simply vanish after you receive your answer. OpenAI's default settings allow the company to use your conversations to help train and improve future AI models. This means your questions, comments, business ideas, personal stories, and any other information you share can be stored and potentially used in responses given to other users. Data collection extends beyond just text—platforms also collect information about usage patterns, device details, IP addresses, and even approximate geolocation.
While OpenAI and other providers have introduced privacy controls, the fundamental reality remains: your interactions are being logged and processed for model improvement purposes. This isn't necessarily nefarious, but it's crucial to understand that you're not simply having a private conversation—you're contributing to training data.
What You Should Never Share With AI Chatbots
Given this reality, certain information should absolutely never be entered into public AI chatbots. Protect yourself by avoiding sharing:
Personal Identifying Information
Never provide your full name, home address, phone number, date of birth, Social Security number, passport number, or government ID numbers. This information can be exploited for identity theft and fraud.
Financial Information
Keep credit card numbers, bank account details, PIN codes, and income information completely separate from AI interactions. Asking AI for general financial advice is fine—sharing your actual financial data is not.
Passwords and Login Credentials
Never type passwords, security codes, authentication tokens, or any login details into these tools. Even hints about your security practices can compromise your accounts.
Sensitive Personal Details
Avoid sharing deeply personal information like medical history, intimate relationships, mental health struggles, or private political and religious views. If this information becomes accessible through a data breach or security incident, the consequences can be serious.
Proprietary and Confidential Information
If you work with classified information, business secrets, unpublished research, or confidential client data, keep this out of public AI tools. These systems are not designed to protect trade secrets or institutional confidentiality.
Quick Reference: Never Share
- Full name, address, phone number, date of birth
- Government ID numbers (passport, driver's licence, tax file number)
- Credit card numbers, bank details, PIN codes
- Passwords, security codes, authentication tokens
- Medical history and health information
- Confidential business or client data
Understanding Your Privacy Options
The good news is that major AI providers have introduced controls to help protect your information, though understanding how they work is essential.
Opt Out of Model Training
Both ChatGPT and Claude allow you to prevent your conversations from being used to train their underlying models. In ChatGPT, navigate to Settings → Data Controls and toggle off "Improve the model for everyone." This doesn't erase your data, but it prevents it from being used for model refinement.
Temporary Chats and Incognito Mode
ChatGPT's Temporary Chat feature prevents conversations from appearing in your history and automatically deletes them after 30 days. Using incognito or private browsing modes can provide additional protection by preventing your device from storing cookies or history.
Clear Your Conversation History
Regularly deleting past conversations containing sensitive information is a simple but effective practice. This reduces the amount of personal data stored on the provider's servers.
Review Privacy Settings
Take time to understand each platform's privacy policy and security settings. Different tools have different defaults, and what applies to ChatGPT may not apply to Claude or other alternatives.
Enable Two-Factor Authentication
Add an extra security layer to your AI accounts by enabling two-factor authentication, which requires a secondary code from your device before anyone can access your account.
Privacy Protection Checklist
- Turn off model training in your settings
- Use temporary or incognito chat modes
- Regularly clear your conversation history
- Review and understand privacy policies
- Enable two-factor authentication
Australian Privacy Considerations
For Australian users, it's worth noting that the Office of the Australian Information Commissioner (OAIC) has explicitly recommended that organisations do not enter personal information—particularly sensitive information—into publicly available AI chatbots, due to significant and complex privacy risks. This guidance applies equally to individuals.
Australia's Privacy Act requires that personal information be handled responsibly, and entering sensitive data into public AI systems can compromise both compliance and legal protections.
Best Practices for Safe AI Use
Be Deliberate About Information Sharing
Before typing anything into an AI chatbot, ask yourself: Would I be comfortable if this information became public? If the answer is no, find an alternative approach.
Anonymise Where Possible
Remove identifying details before entering sensitive scenarios into a chatbot. Instead of naming people or companies, generalise the situation.
Use AI for Appropriate Tasks
AI chatbots excel at research, writing assistance, coding support, creative brainstorming, and learning. Avoid tasks that inherently require sharing sensitive personal or financial information.
Verify Important Outputs
AI chatbots can generate plausible-sounding but inaccurate information. Always fact-check key details using trusted sources.
Keep Devices and Networks Secure
Use updated devices, reputable antivirus software, and avoid public Wi-Fi when accessing AI tools.
Stay Informed
Privacy policies and platform controls evolve, so review them periodically to ensure your settings still align with your preferences.
The Bottom Line
AI chatbots are powerful tools that can genuinely improve productivity and decision-making. The key to using them safely is understanding that your data is not private in the traditional sense—it is collected, stored, and used for AI development purposes.
This doesn't mean you should avoid these tools. It means you should use them deliberately and responsibly. When treated like any other powerful technology, AI can enhance your work and personal life—without exposing you to unnecessary risk.
Key Takeaways:
- AI chatbots provide real benefits for productivity, research, and learning
- Your conversations may be used to train future AI models by default
- Never share personal, financial, or confidential information with AI chatbots
- Use privacy controls like opting out of model training and temporary chats
- Australian privacy guidelines recommend against entering personal data into public AI
- Anonymise information and verify AI outputs before acting on them
- Use AI deliberately and responsibly—it's a tool, not a confidant