Data privacy covers the policies and technical controls that determine what data an AI agent can see, how it is stored, how long it is retained, who can access it, and whether it ever leaves the organization's infrastructure.
An HR AI agent that processes employee records and is configured to mask sensitive fields before they reach the language model, not store conversation logs beyond 24 hours, and restrict access to HR administrators only — is implementing data privacy controls. These are not nice-to-have features. In most industries, they are legal requirements.
