Guide

AI and confidential information

Most companies haven't thought through what 'confidential' means once their team starts pasting documents into AI. This guide gives you a clear framework you can hand to staff today.

Reviewed by Level Up Automate.
TL;DR
  • Define three tiers: public, internal, confidential. Most companies skip this and pay for it.

  • Confidential content (M&A discussions, customer agreements, source code) needs special handling — not consumer AI tools.

  • Train staff on the tiers once, and they will apply them every day.

The three tiers

Use these names with your team.

  • Public: anything already on your website, in published reports, or in public filings. Safe to paste anywhere.
  • Internal: ordinary business content not meant for the public — internal memos, meeting notes, draft proposals. Safe in approved tools.
  • Confidential: M&A, NDA-bound discussions, executive comp, source code, customer contracts. Approved tools only, with extra rules per your industry.

Practical rules

What this looks like day-to-day.

  • Confidential content is summarized before being shared with AI, not pasted whole.
  • M&A and NDA-bound content uses dedicated tools approved by leadership for that purpose.
  • Source code goes only to a coding-assistant tool that has a contract committing not to retain or train.
  • When in doubt, treat as confidential and ask before pasting.
Common questions

Plain-English answers

What about NDAs we have with clients?
Most NDAs are silent on AI specifically. Default to: don't put NDA-covered material into any tool you wouldn't put it in if your client were watching.
Next step

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