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Data & governance

How do you assess privacy and data processing at an AI provider?

A trusted brand or certification does not by itself show whether a particular AI service is suitable for your data and use case. A reliable assessment connects the data flow, contractual terms, technical configuration and verifiable evidence.

The short answer

Assess an AI provider at four levels: the full data flow of the exact product, legal roles and contractual terms, technical and organisational safeguards, and evidence that those safeguards apply to your real configuration and ongoing operation.

In brief

  • Start with the task, data and consequences of error, not a generic vendor questionnaire.
  • Assess the exact plan, endpoint and feature set; statements about the brand alone are too broad.
  • Separate training, retention, data location, subprocessors, support access and internal logging.
  • Record the decision, conditions, accountable owners and date of the next review.

Define the use case first

A provider cannot be assessed meaningfully without a bounded use case. A writing assistant for public content creates different requirements from analysing recruitment files or health information.

  1. Step 1

    Task

    What specific output should the application produce?

  2. Step 2

    Data

    Which inputs, sources and personal data will it process?

  3. Step 3

    Users

    Who may use the application and underlying information?

  4. Step 4

    Consequences

    What happens if an output is wrong or information is disclosed?

  5. Step 5

    Risk level

    Do the technology, purpose, scale or data indicate the need for a deeper impact assessment?

Map the exact product and data flow

Many providers operate several products under different terms. A consumer chat, enterprise workspace and API can differ materially in training, retention and administration.

  • Exact product, plan, region, model and API endpoint
  • Inputs, outputs, files, conversation history and derived metadata
  • RAG sources, web search, plug-ins, connectors and code execution
  • Storage locations, retention periods, backups and deletion paths
  • Subprocessors, support access and possible international transfers
  • Internal logs, monitoring, analytics and error systems

Roles and contract must match the data flow

When a provider processes data on the organisation’s behalf, the organisation remains responsible for careful selection, instruction and appropriate oversight. The agreement needs to cover the actual technical use.

  • Roles of all parties and permitted processing purposes
  • Processing only on documented instructions
  • Confidentiality and technical and organisational safeguards
  • Rules for new or changing subprocessors
  • Safeguards for transfers to countries without adequate protection
  • Support for access, correction, deletion and security incidents
  • Return, export and deletion at contract end
  • Notice and termination rights for material product changes

Evidence is stronger than product promises

Certifications and audit reports can support an assessment but do not replace review of the use case. The key question is whether required controls are available, configured correctly and verifiable.

Evidence is stronger than product promises
Review areaConcrete questionExpected evidenceWarning sign
Identity and accessCan SSO, MFA, roles, tenant separation and automated revocation be enforced?Test-tenant configuration, role matrix and an audit log of a revoked account.Shared accounts, coarse admin roles or no exportable access logs.
Retention and deletionWhich content, metadata, backups and features are stored, and for how long?Contractual periods, product matrix and a successfully tested deletion case.A generic ‘no training’ statement without retention or downstream-system details.
Data flow and subprocessorsWhich parties process which data in which countries?Current subprocessor list, regions, transfer safeguards and change process.Unknown recipients, a global default region or changes without an objection route.
Security and incidentsHow are vulnerabilities, administrative changes and data breaches detected and reported?Audit report, incident process, notification deadlines and sample audit entries.A certificate without scope, unclear reporting channels or no binding timelines.
Quality and product changeHow are model, feature and security changes announced and re-evaluated?Release process, change log, evaluation results and a suspension or termination route.Silent model changes or material updates without reviewable evidence.

Approve with evidence and continue reviewing

Provider assessment does not end when the contract is signed. Models, features and subprocessors change. A limited pilot shows whether commitments, configuration and working practices align in reality.

  1. Step 1

    Start safely

    Pilot first with synthetic, anonymised or low-sensitivity data.

  2. Step 2

    Verify configuration

    Technically check region, retention, training, roles and logs.

  3. Step 3

    Test realistically

    Evaluate quality, data leakage, failure cases and human review with representative cases.

  4. Step 4

    Document approval

    Record permitted data, features, conditions and accountable owners.

  5. Step 5

    Monitor operation

    Review changes, incidents, access and provider performance; rehearse export and exit.

Example from day-to-day business

Example: extracting data from incoming invoices

A company assesses a service that classifies invoices and extracts fields. The documents contain contact, banking and order information. Before the pilot, the team clarifies the data flow, product region, subprocessors, deletion periods and training use. The agreement covers instructions, incidents, return and deletion. SSO, roles and content-minimising logs are enabled. The pilot begins with synthetic invoices and then a limited approved dataset. Extraction, failure cases, human correction and deletion are tested before production approval.

What to remember

A good provider assessment ends with a traceable decision: approved use case, permitted data, active safeguards, contractual evidence, residual risks, accountable owners and next review date.

Sources and further reading

These primary sources provide further detail on definitions, technical foundations or responsible use.

Content reviewed

General assessment guidance based on official regulator and standards sources. This is not legal advice; privacy and contractual questions must be assessed for the actual deployment.

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