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Is it safe to sell company data to AI? A risk checklist

Short answer: It can be done carefully, but risks are real: customer and employee personal data, contracts that bar sharing, regulated data, exclusivity and re-identification. Exclude high-risk data rather than relying on de-identification, and get legal, privacy and security review before samples leave your systems.

Checklist

  1. Inventory systems and date ranges.
  2. Confirm you own or may license each data set (customer, vendor and platform terms).
  3. Exclude privileged, HR, payroll, health and regulated data.
  4. Control the de-identification protocol and audit a sample.
  5. Negotiate use limits, exclusivity, deletion and liability.
  6. Document the decision for future due diligence.

Adapted from Frankfurt Kurnit.

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

Can AI identify people in de-identified data?

Re-identification is a known risk. Mode says its AI customer is contractually barred from trying.

Will anyone know we sold data?

Mode says it doesn't name the company publicly without consent but may share name and a description with its AI customer under confidentiality.

Sources

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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