Hesham Elmahdy

When we use an AI agent, where does my company's data go, and can it stay in my country?

The short answer

Whatever the agent reads is sent to the model to be processed. Unless you run the model yourself, that means it goes to the company that runs the model, and is processed and often stored wherever that company does it. Some providers now let business clients choose the region. Whether that is enough depends on which of your data is sensitive, and on the law in your country and your sector.

What actually leaves your company

To answer a question, the agent first reads your data: a contract, an invoice, a client’s history. To think about it, it sends what it read to the model. If the model runs at a provider, that text travels to the provider’s servers and is processed there.

Your own connection does not change this. At OdooTec we built our own connector to our ERP system and run it on our own server. That decides what the agent is allowed to read. It does not decide where the model processes what it read.

Three questions, not one

“Where is our data?” is really three questions:

Not all your data is the same

Sort your data before you choose a product:

Your options

The question to ask your team

“For each kind of data the agent will read, where is it processed, where is it stored, and for how long?” If the answer is the same for every kind of data, nobody has sorted the data yet.

I am not a lawyer. The rules on sending data abroad differ by country and by sector, so ask a lawyer about yours.

References

  1. OpenAI, Enterprise privacy at OpenAI
  2. Anthropic, Is my data used for model training?
  3. OpenAI, Expanding data residency access to business customers worldwide, November 2025
  4. UNCTAD, Data Protection and Privacy Legislation Worldwide
  5. Stanford HAI, The 2025 AI Index Report, Top Takeaways

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