How to Know If a Company Is Trustworthy With Your AI Data

Every week, it seems there’s a new AI tool promising to save time, spark creativity, or streamline your workflow. But as these products become part of daily life, a nagging question follows: what are they doing with your data? Recent coverage from companies like Telefónica has pushed the conversation about digital trust in the AI era into the open. For the average user, though, the challenge is knowing which companies actually deserve that trust.

This article walks through what to look for—and what to watch out for—so you can make informed choices about the AI services you use.

The push for digital trust

The surge in AI adoption has outpaced the rules meant to govern it. That gap is why we’re seeing a flurry of articles, reports, and corporate statements about building digital trust. Telefónica, for instance, has published several pieces examining how companies can earn user confidence in AI, alongside discussions on AI regulation and compliance. The underlying message is consistent: trust isn’t automatic—it must be demonstrated through clear practices.

But from a consumer standpoint, these corporate talks can feel abstract. You aren’t looking for a philosophical discussion; you want to know whether the AI chatbot you’re using is selling your conversations, or whether the photo-editing app is training on your images without permission.

What responsible AI data practices look like

When a company is serious about earning your trust, its privacy practices tend to share certain features. These are the green lights to look for:

Transparency about data collection. The company should plainly state what data the AI collects, how it is used, and whether it is stored. Look for specific language, not generic statements like “we may collect information to improve our services.”

Explicit consent mechanisms. Before the AI processes your data, you should be asked for permission. Ideally, this consent is granular—you can agree to some uses and not others. The option to withdraw consent later should be just as easy.

Data minimization. A trustworthy service collects only the data necessary for the feature to work. If a writing assistant asks for your location or contact list, that’s a red flag.

Clear opt-out for training. Many AI models improve by learning from user interactions. Responsible companies let you opt out of having your data used for training, and they explain the consequences (e.g., the AI may not personalize as well).

Independent audits and certifications. Look for evidence that a third party has reviewed the company’s data practices. Certifications like ISO 27701 (privacy information management) or reports from firms like TrustArc signal genuine effort.

Red flags that should make you pause

Just as important as the green lights are the warning signs. If you see any of these, proceed with caution:

  • Vague or overly broad privacy policies. If the policy uses phrases like “we may share data with third parties” without specifying which ones, or “we use data for research” without defining research, the company is leaving itself too much room.
  • No option to delete your data. You should be able to request deletion of your account and associated data. If the path to deletion isn’t clear or requires jumping through hoops, that’s a problem.
  • Hidden data use for AI training. Some companies bury in their terms that they will use your content to train models unless you explicitly opt out (and sometimes even then). Read the fine print.
  • Lack of a privacy officer or contact. A company that takes privacy seriously will have a dedicated way to reach someone responsible. If you can’t find any contact information for privacy questions, that’s telling.

How to evaluate a company’s AI privacy approach

You don’t need to be a lawyer to get a reasonable picture. Here’s a practical checklist you can run through in a few minutes:

  1. Read the privacy policy’s “Data Sharing” and “Data Retention” sections. Are they specific?
  2. Check the account settings for a “Privacy” or “Data” tab. Look for options to download, delete, or control training use.
  3. Search “[company name] privacy audit” or “[company] data practices review” to see if independent journalists or watchdogs have looked into them.
  4. See whether the company publishes a transparency report or blog about their AI ethics. A vacuum of information is rarely a good sign.
  5. If the tool is free, consider how the company might be monetizing data. “If you’re not paying for the product, you are the product” isn’t always true, but it’s worth asking.

Your role in demanding better practices

Companies will only invest in digital trust if users demand it. That means not blindly clicking “Accept” on consent popups. Take a moment to adjust settings after signing up. Send a politely worded email to customer support if you find a practice unclear. Over time, feedback from users does shape corporate behavior.

The AI era is still early, and the rules are still being written. By staying informed and holding companies to a reasonable standard, you help push the industry toward practices that respect your privacy while still delivering the benefits of artificial intelligence.

Sources:

  • Telefónica, “Artificial Intelligence and data privacy: How companies can build digital trust in the AI era” (June 2026)
  • Telefónica, “Artificial intelligence in compliance” (June 2026)
  • Telefónica, “AI regulation: what it is, its impact on businesses, and how to create value with secure and reliable artificial intelligence” (June 2026)

(All articles accessed via Google News, June/July 2026.)