Artificial Intelligence tools such as ChatGPT, Microsoft Copilot, Claude, Gemini and NotebookLM are becoming increasingly popular within businesses of all sizes. Companies are using AI to draft emails, summarise documents, automate tasks, analyse data and improve productivity. However, many organisations are now asking an important question, is using AI compliant with UK GDPR and data protection legislation?
The simple answer is yes, AI can absolutely be used within a business environment, but organisations must use it responsibly. Under UK GDPR, businesses remain responsible for any personal or confidential data entered into AI systems, even when using third party providers. This means companies must understand what information employees are uploading and how those platforms process and store data.
One of the biggest risks comes from staff using public or free AI tools without proper controls. Uploading customer records, HR data, financial information, contracts or confidential business documents into consumer AI platforms could potentially create data protection and confidentiality concerns. Businesses should therefore implement clear AI usage policies and ensure staff understand what data should never be entered into these systems.
Enterprise versions of AI platforms generally provide stronger privacy and security protections than free consumer accounts. Microsoft Copilot within Microsoft 365 is currently regarded as one of the more business friendly options due to its integration with existing Microsoft security and compliance controls. Similar enterprise protections are also available with ChatGPT Team and Enterprise, Claude business offerings and Google Workspace AI services.
The Information Commissioner’s Office (ICO) does not prohibit the use of AI, but organisations are expected to carry out appropriate due diligence, risk assessments and governance. In some cases, businesses may also need to complete a Data Protection Impact Assessment (DPIA), particularly where personal or sensitive data is being processed at scale.
Businesses looking to adopt AI safely should ensure they have clear policies, staff training and appropriate security controls in place before rolling out AI tools internally. We have produced a more detailed guidance document covering ChatGPT, Copilot, Claude, Gemini and NotebookLM in greater detail, including GDPR considerations, business risks and best practice recommendations. Click here to open our dedicated PDF document.
