Glossary · Updated Sep 2, 2026

Data residency and privacy

Where and how an AI vendor stores and processes your data, whether it trains on it, and which regional or contractual guarantees apply.

Definition

Data terms cover storage location, retention periods, use for model training, encryption, sub-processors, and certifications. Enterprise plans usually add opt-outs from training, regional processing, and audit rights. Regulated industries and European organisations often require specific residency guarantees or self-hosting.

Why it matters when choosing a tool

Before connecting company data to an AI tool, confirm training opt-out, retention, and residency; these terms differ sharply between free and business plans.

Where you will meet it

AI Legal & Contracts, AI Knowledge Management, AI Customer Support

Related terms

Training data · Training opt-out · Self-hosting

Tools where this matters

Reviewed products in the related categories