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De-identification in AI data deals: what to check

What buyers say they do to de-identify data, what regulators say about it, and why it doesn't replace excluding high-risk records.

Last updated 4 sources cited1 min read

Short answer: Buyers describe removing sensitive material and transforming personal information, with a sample for you to audit. That helps but isn't a cure-all: regulators treat de-identification as its own use of personal data, and some data should be excluded outright rather than de-identified.

On this page
  1. What buyers say
  2. What regulators say
  3. What to check in the sample
  4. Frequently asked questions
  5. Sources

What buyers say

Mode: sensitive material is removed and personal information transformed before the AI customer sees the data, and the owner can audit a sample (Mode affiliate FAQ).

What regulators say

Australia's OAIC: 'De-identifying personal information is a use of the personal information for a secondary purpose' (OAIC). In US health care, HHS sets specific methods for HIPAA de-identification (HHS).

What to check in the sample

  • Names, emails and phone numbers in signatures and threads.
  • Identifiers in attachments and images.
  • Facts that identify someone even without a name.

This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.

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Frequently asked questions

Is de-identified data still personal data?

It depends on the law and how well it's done. Ask counsel.

Who decides the protocol?

Negotiate it in writing; Frankfurt Kurnit recommends controlling it.

Sources

  1. Mode affiliate FAQ (PDF, dated Oct 14, 2026)bizbuydata.com
  2. OAIC: Guidance on privacy and developing and training generative AI modelsoaic.gov.au
  3. HHS guidance on HIPAA de-identificationhhs.gov
  4. Frankfurt Kurnit: Selling Company Data for AI Trainingtechnologylaw.fkks.com

Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.

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