The 77% stat gets shared a lot, but the real problem is architectural. Cloud AI tools require data egress by design—you cannot use them without sending data away.
The fix isn't more policy training. People will always paste when deadlines hit. It's building AI that runs where your data already lives.
We're seeing three patterns emerge:
Each shifts the trust boundary. Instead of trusting a third party with everything, you trust them with inference only.
The companies solving this at the infrastructure layer—not the policy layer—will win the enterprise market. Policy breaks under deadline pressure. Architecture doesn't.
Arcede
This is a real concern that most teams overlook. The context window is essentially a shared workspace — and if your prompts contain proprietary logic, the model has seen it. We have been helping teams set up guardrails for exactly this: separating what goes into the prompt vs what stays local. Great write-up.