AI Engineer Here: Are Regulated Teams Actually Reading Their Cloud LLM Terms?
Been thinking about something that keeps coming up in conversations with compliance and security teams at regulated firms, and I'm curious whether others are seeing the same thing.
I Had an interesting conversation with a compliance lead at a financial services firm last week and he was pretty confident their cloud AI vendor was handling their documents safely. They had DPA signed, opt-out enabled and the vendor was SOC 2 certified.
I asked if they knew what was being logged during inference and who at the vendor could access those logs and They didn't know.
It got me thinking about how narrow the training opt-out commitment actually is and how little people actually know about it. It says your data won't train future models but nothing about inference logging, shared GPU tenancy, log retention schedules or what happens if the vendor gets a government subpoena. Because those governed by separate policies.
Curious how others in regulated environments are actually handling this. Are your teams making a deliberate architectural decision here? Are you aware of the risks?