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- What User Information Do Different Industries Collect?
- Users’ Right to Know and Available Remedies
- Why Companies Should Publish “Information Use and Privacy Policy Statements”
When you entrust an institution with your most private family, financial, or business information, what journey does your data undergo? Bank statements, transaction records, medical histories, contracts, personal identification details… In an era of rapidly advancing AI technology, these materials often enter the processing workflows of various digital tools without your awareness.
From finance and healthcare to tech companies, educational institutions, consulting, and legal services, nearly every industry leverages AI to boost efficiency. Yet when data enters external systems, online platforms, or cloud tools, the absence of strict regulations and transparency leaves it vulnerable to storage, access, or even use in model training.
Multiple industry studies in 2025 indicate that global adoption rates for generative AI exceed 70% across businesses, with particularly notable growth in finance, technology, education, healthcare, and professional services. This rapid proliferation of AI makes “where data is uploaded” and “how it is processed” shared privacy and security challenges for all industries.
Common types of client data include:
- Personal information: Name, contact details, ID/passport number, address, etc.
- Financial and transaction information: Bank statements, contracts, transaction records, investment details
- Case or contract-related materials: Contract terms, commercial agreements, case summaries, evidence materials
- Sensitive information: Trade secrets, intellectual property, family privacy matters, medical information, etc.
It is perfectly acceptable for businesses to utilize reliable artificial intelligence tools to enhance their professional services. However, companies must correctly understand and responsibly use these tools, ensuring their accuracy while adhering to applicable laws, regulations, and professional conduct standards. To deliver effective services, businesses inevitably need to understand their clients’ circumstances, and this information inherently covers an extremely broad scope. From basic details like names and contact information, to financial records such as bank statements and transaction histories, to contracts, business negotiation records, details of family disputes, medical or commercial secrets—these elements form the crucial basis for professional institutions to deliver relevant services. Once this information is uploaded, forwarded, copied, or processed digitally, its risks escalate significantly compared to the paper era. What may appear as a simple document or conversation can automatically become identifiable information within digital systems once it contains names, addresses, company names, or business details.
The use of AI undoubtedly helps businesses improve operational efficiency. However, enhancing efficiency does not justify neglecting privacy protection. Companies must clearly define and strictly limit how customer data is used, ensuring all information is utilized solely within the scope necessary for business services. They must not lose sight of the balance between processing efficiency and privacy risks.
Before utilizing any external tools, enterprises must exercise prudent judgment: Is AI truly indispensable for this task? Are there safer alternatives? If digital tools are indeed necessary, prioritize on-premises deployment or solutions that prevent data leakage. When online tools are unavoidable, all identity information, trade secrets, and private content must undergo thorough de-identification before upload—including replacing names, removing account details, and obscuring commercial content. Even then, AI responses should only serve as advisory opinions, with final decisions resting with professionals. In other words, technology may provide support but must not infringe upon client privacy rights or replace an enterprise’s professional responsibilities.
In the digital age, customers not only provide information but also have the right to understand how it is processed. You may request that businesses clarify where data will be stored, who has access, whether third-party platforms will be used, and what security measures are in place. You may also request that certain sensitive data be handled only manually, or demand the deletion of relevant data after a case is closed. Businesses also bear the responsibility to proactively inform customers about the tools and methods that may be used, especially when relying on external platforms. Transparency is not only essential for safeguarding customer rights but also a critical element in building trust. Only when customers clearly understand the flow of their information can the partnership remain stable and secure. This includes specifics such as:
- Basic information processing procedures and purposes
- Understanding the security measures implemented by the company (encryption, data anonymization, access controls, etc.)
- The option to request manual processing only
- The right to request deletion or anonymization of personal information after service completion
Why Companies Should Publish a “Customer Information Use and Privacy Policy Statement”
The ultimate purpose of disclosing customer information usage and privacy policies is, of course, to reassure customers and build trust. Customers are the true owners of their data, and every document they entrust to a company involves highly sensitive details about their identity, assets, family, or business. If the handling of this information lacks transparency, customers will naturally find it difficult to genuinely feel at ease entrusting their real concerns to the company.
At the same time, this is an essential response enterprises must make as they navigate the new era of technology. As AI and various digital tools become increasingly prevalent across industries, we cannot allow the pursuit of efficiency to overshadow our commitment to confidentiality obligations. Transparency with clients regarding information processing methods is a crucial demonstration of an enterprise’s professionalism and sense of responsibility.
More importantly, this practice helps prevent risks and ensure compliance. Improper handling of information may not only violate customer privacy but also breach data protection regulations or professional ethics, triggering a crisis of trust and potentially impacting corporate reputation and legal liability.
Conclusion
In today’s era of relentless technological advancement, businesses face challenges that extend beyond mere efficiency gains—they must establish a robust equilibrium between productivity and confidentiality obligations. Therefore, disclosing and explaining our information usage and privacy protection policies constitutes both a responsibility and a commitment to our clients. Clear policies enable clients to understand the principles, procedures, limitations, and safeguards guiding our data handling practices, while also mitigating potential legal and reputational risks. Simultaneously, businesses must maintain ongoing professional sensitivity, regularly reviewing privacy policy changes in the tools they employ to ensure every operation adheres to professional ethics and relevant laws. As technology rapidly integrates across industries, transparency and prudence are not optional extras—they are essential to safeguarding client interests and upholding professional standards. Only by adhering to these principles can businesses achieve a true equilibrium between efficiency and accountability.
Written by Xueying Yang; Content planning: Gang Sun; Xueying Yang; Proofreading: Gang Sun
This article is provided by Sunfield Chambers Solicitors & Associates. The content of this article is based on publicly available information and the author’s understanding, and does not constitute any form of professional legal advice or basis for business decisions. Readers should refer to this article in the context of their own actual situation and consult relevant professionals for specific guidance. The author and the publishing platform do not assume legal responsibility for any consequences arising from the use of the information in this article.
Consultation with Specialized Lawyers
Abraham Sun
Principal Solicitor
As the Principal Solicitor, Abraham has been working with numerous clients including listed companies, state-owned enterprises, ultra-high-net-worth clients, and investment banks. Customers in various industries including Australian and Chinese companies and individual investors, had achieved considerable economic benefits with his professional legal advice.
Dickson Luo
Solicitor
Dickson mainly conducts dispute resolutions and commercial litigation in areas across insolvency, corporations, employment, real property and consumer law. He is proficient in English and Chinese Mandarin, and have extensive experience acting for clients who have limited or no English skills in complex disputes and litigation matters.
Linda Thai
Solicitor
Linda assisted our legal team with a range of litigation matters in Australian intermediate and superior courts. She has established solid foundations in litigation from assisting in matters from the initial investigation stage to briefing and liaising with barristers and also assisting our solicitors at court appearances.
Bhanu Seemar
Solicitor
Bhanu is a commercial litigation lawyer who has extensive experience working closely with counsel on a range of commercial law matters including contract disputes, insolvency disputes, consumer and franchise disputes, shareholder claims, financial services and regulatory enforcement matters, corporations law, and class action litigation.
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