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Guide · About 6 minutes

Private AI vs public chatbots: what actually changes.

Your team is probably already pasting work into AI tools. The useful question isn't whether to allow AI, but which information can go where.

Who it's for

Owners and managers deciding how their team should use AI with business information.

Three ways to use AI with business information

Almost every option falls into one of three groups. They differ less in how clever the AI is and more in who controls where your information goes.

AspectPersonal or free chatbotsBusiness plans from AI providersModels on hardware you control
Who controls the settingsEach staff member, on their own accountYour organisation, through an admin accountYou, entirely
Where information goesTo the provider, under consumer termsTo the provider, under business terms you can reviewNowhere outside your network
CapabilityStrongStrongGood and improving; best on focused tasks
Effort to set upNoneLowModerate: hardware, setup and upkeep
Good forPublic information onlyEveryday internal work, once settings are agreedConfidential or regulated information
Check the terms, not the marketing. Providers' data terms differ between consumer and business plans, and they change. Before a tool is approved, someone should read the current terms for that plan: whether inputs are used for training, how long they're kept, and where they're processed.

Sort your information first

The decision gets much easier once information is sorted into a few groups. A simple version for small teams:

  • Public: anything already on your website or in published material. Any tool is fine.
  • Internal: everyday working documents, procedures, meeting notes. An approved business plan with agreed settings.
  • Confidential: client details, pricing, contracts, staff matters. Only approved tools that keep it in-house, or not at all.
  • Regulated or highly sensitive: health, financial or legally privileged information. Get specific advice before any AI use.

When private AI is worth it

Running a model on hardware you control makes sense when a valuable, repetitive task depends on information that should never leave the business. Typical examples are searching internal documents, drafting from confidential templates, or summarising client files.

It is usually not worth it for general writing help, or when an approved business plan already meets your information rules. The extra setup and upkeep should buy you something specific.

A sensible way to start

  1. Write down which tools are approved and for which groups of information. A one-page AI use policy is enough to begin.
  2. Pick one recurring task and decide which group its information falls into.
  3. Choose the simplest option that respects that group.
  4. Keep a person reviewing anything that leaves the business.

This is general information, not legal or security advice for your situation.

Signal 01 / If the tool adds friction, it is not finished.