Guides · Updated October 4, 2026
What information should employees never put into AI tools?
The short answer
Unless a tool has been approved for it, employees should keep out personal information about customers and employees, confidential business information, anything covered by a confidentiality agreement, regulated data such as health or financial account information, and passwords or access details. A simple rule: if you would not email it to a stranger at another company, do not paste it into a tool the company has not approved.
The categories, with examples
- Personal information: names with contact details, Social Security numbers, dates of birth, home addresses, pay, performance reviews, medical or leave records.
- Customer and client information: account details, files a client shared with you, anything under a nondisclosure agreement.
- Confidential business information: pricing, margins, financial results, bids, strategy, legal matters.
- Regulated information: health information held by a healthcare provider or plan, payment card numbers, bank account numbers.
- Security details: passwords, access keys, network and system configuration.
Why it matters even when nothing seems to happen
Once information is entered into a tool, the company no longer controls it. Depending on the provider’s terms and the account settings, it may be kept, reviewed by the provider’s staff, or used to train future models. A confidentiality agreement with a client may already treat that as a breach.
An approved tool changes some of the answer
A business account with training switched off and a contract with the provider can make some internal information acceptable. The policy should say exactly which categories are allowed in which approved tool. Personal and regulated information usually stays out even then, unless the tool was set up and contracted for it.
Sources
This guide is general information for U.S. employers, not legal advice. Standard Practice is not a law firm. Laws change and depend on where your employees work; take advice from employment counsel on your own situation.