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Being AI-Savvy7 min

Privacy and AI

When you use AI tools, you share data with the companies behind them. Understanding what they collect — and your rights over that data — is an important part of using AI responsibly.

What AI tools collect

When you type a prompt into an AI chatbot, that prompt is sent to a server, processed, and — in most cases — stored. The company may use your conversations to improve their models, display targeted advertising, or share data with partners. The details vary by provider and are buried in terms of service that almost nobody reads.

What this means in practice

Do not share with AI anything you would not share publicly. This includes:

  • Personal information about yourself or others (health details, financial information, relationship details)
  • Confidential work information, client data, or trade secrets
  • Passwords, account numbers, or identifying details

Many organisations now have policies — or should have — about what employees may and may not share with AI tools.

Your rights under New Zealand law

The Privacy Act 2020 gives New Zealanders rights over how their personal information is collected and used. You have the right to ask organisations what data they hold about you, to have errors corrected, and in some cases to have data deleted. These rights apply to AI companies that operate in New Zealand or process data about New Zealanders.

Opting out of data collection

Most major AI providers now offer ways to opt out of having your conversations used for training. ChatGPT and Claude both have settings to disable this. Check the privacy settings of any tool you use regularly.

The question is not whether to use AI — it is what to share with it. Treat AI conversations like conversations with a stranger in a public place: helpful, but not confidential.

Check your understanding

3 questions, 70% to pass
1. What typically happens to prompts you type into an AI chatbot?
2. Which should you never share with an AI tool?
3. What rights does the Privacy Act 2020 give New Zealanders?