Building & Product

Is it safe to send customer data to AI APIs, and what about privacy laws like India's DPDP Act?

The major API providers (OpenAI, Anthropic) do not train on your API data by default, and Anthropic no longer keeps API prompts at all by default, except on Claude Fable 5.1, which requires 30 days. So the common fear is mostly solved by reading the actual policies and signing the right agreement. Your real risks are elsewhere: prompt injection and data leakage in your own app (see the OWASP LLM Top 10), and your duties as a data fiduciary under India's DPDP Act (most enforceable from May 2027) or GDPR, including consent, purpose limitation, and deletion. Minimise what you send, redact PII where you can, and put your provider's terms in your own privacy policy.

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