Chatbots like ChatGPT, Gemini, Microsoft Copilot, and the recently released DeepSeek have revolutionized how Texas businesses and individuals interact with technology. These tools offer assistance with everything from drafting e-mails and generating content to writing grocery lists that stick to your budget.

But as these AI-driven tools become part of everyday life, concerns about data privacy and security risks are rising. So, what happens to the information you share with these chatbots, and what risks are you exposing yourself to?

The truth is that these bots are always on, always listening, and always collecting data about YOU. Some platforms are more discreet than others, but rest assured — data collection is happening.

How Chatbots Collect And Use Your Data

When you interact with chatbots, your data doesn’t disappear. Here’s how it’s processed and stored:

Data Collection

Chatbots gather text inputs to generate responses, which may include personal details, business information, or proprietary content.

Data Storage

Data retention policies vary by platform:

  • ChatGPT: OpenAI collects your prompts, device data, location, and usage details. This information may be shared with third-party vendors for “service improvements.”
  • Microsoft Copilot: Microsoft collects data similar to OpenAI but also logs your browsing history and interactions with other apps. This data may be used for ad personalization or training AI models.
  • Google Gemini: Conversations are logged to “enhance Google products and machine learning technologies.” Data can be retained for up to three years — even if you delete your activity.
  • DeepSeek: This platform is particularly invasive. DeepSeek collects chat history, location data, device information, and even typing patterns. This data is stored on servers in the People’s Republic of China and used for advertising insights.

Data Usage

Collected data is commonly used to:

  • Improve chatbot performance.
  • Train AI models.
  • Enhance user experience.

These practices raise concerns about consent, data misuse, and third-party sharing.

Potential Risks To Users

AI chatbots pose serious privacy and security risks for businesses in Texas:

  1. Privacy Concerns

Sensitive information shared with chatbots may be exposed to developers or third parties, increasing the risk of data breaches.

  • Example: Microsoft Copilot faced criticism for unintentionally exposing confidential data due to overpermissioning. (Concentric)
  1. Security Vulnerabilities

Chatbots connected to larger systems can be manipulated for malicious activities.

  • Example: Microsoft Copilot was exploited for spear-phishing campaigns and data exfiltration. (Wired)
  1. Regulatory And Compliance Issues

If your Texas business uses chatbots that mishandle data, you could face violations of GDPR, HIPAA, or PCI DSS regulations.

  • Many businesses have restricted tools like ChatGPT over data storage and compliance concerns. (The Times)

How To Protect Yourself And Your Business

  1. Be Cautious With Sensitive Information

Avoid sharing confidential data unless you’re confident in how the chatbot handles it.

  1. Review Privacy Policies

Understand what data is collected, how it’s stored, and what third parties can access it.

  1. Utilize Privacy Controls

Tools like Microsoft Purview allow businesses to manage and mitigate data risks associated with AI platforms by implementing protection and governance controls.

  1. Stay Informed

AI platforms frequently update their privacy policies. Stay informed on changes that could impact your business’s data security.

The Bottom Line

AI chatbots offer significant benefits in improving productivity and efficiency, but users must be aware of the data security risks they pose. By proactively protecting your data and making informed decisions, you can continue to leverage chatbots without jeopardizing your business’s sensitive information.

Want to ensure your Texas business is secure in today’s evolving digital landscape?

Start with a FREE Network Assessment to evaluate vulnerabilities and implement strategies to protect your data against chatbot-related risks.

Click here to schedule your FREE Network Assessment today!