Secured conversations – data privacy in the age of AI chatbots

From answering customer questions to automating business processes, Large Language Models (LLMs) are rapidly transforming how we interact with machines. But with this exciting technology comes a key question: how can we ensure data security?

A powerful foundation

The LLM-based chatbots aren’t made from scratch. Instead, they use the power of pre-existing Large Language Models (LLMs) like OpenAI’s GPT-4o or Google’s own Gemini. These powerful models have been trained on massive datasets, providing a robust foundation for understanding language structure and generating responses. Their extensive training allows them to comprehend and respond to a wide range of queries, making them versatile tools for many applications.

Tailoring the language to your business

A general understanding of language isn’t enough for a company-specific chatbot. To be genuinely effective, the LLM needs to know your company’s unique terminology, data, and documents. By incorporating your internal data into the pre-existing base model, we can customize the LLM to understand your company’s specific language and information structure.

The base model, however, doesn’t have access to the entire knowledge base. Instead, thanks to Retrieval Augmented Generation (RAG), it receives only data carefully chosen to match specific user queries.

RAG functions as a filter, eliminating from the model’s scope information that is not relevant to the current conversation.

This process enables the chatbot to provide precise responses about services and products without having full access to company data.

The power and the peril

A primary concern with LLM-based chatbots is the potential misuse of company data for model training or public disclosure. When deploying these chatbots, especially for internal use such as employee assistance or HR automation, it’s crucial to protect sensitive and confidential information. 

Ensuring compliance with data security regulations

Regulations like the General Data Protection Regulation (GDPR) in Europe set high standards for the collection, storage, and processing of personal data. These regulations require organizations to obtain explicit consent for data usage, ensure data accuracy, and provide mechanisms for data subjects to access, correct, or delete their information upon request.

Compliance with GDPR and similar still emerging regulations is integral to our approach. We implement data protection measures within our LLM-based chatbots, such as anonymization techniques, encryption protocols, and secure data storage practices

As AI regulations continue to evolve, we consistently verify the compliance of our solutions with emerging standards, including the recent EU Artificial Intelligence Act (AI Act) and its AI Act Compliance Checker. 

The Act assigns applications of AI to risk categories. Unacceptable risk (banned) includes “applications and systems such as government-run social scoring of the type used in China”. High-risk applications including “CV-scanning tools that rank job applicants”, need to comply with specific legal requirements.

These requirements may include transparency measures to explain how the AI system arrives at its decisions, practices to mitigate bias, and human oversight mechanisms to ensure accountability.

Leveraging commercial API access and data protection

We create LLM-based chatbots using commercial APIs from AI providers like OpenAI and Microsoft. These APIs offer protection through contractual agreements, guaranteeing our clients’ data is not used for public model training or disclosure by the API provider.

However, security goes beyond contracts. We conduct thorough reviews of service terms and API limitations to identify any potential risks. This due diligence ensures data handling practices align with your organization’s security policies. Additionally, we reinforce data protection through non-disclosure agreements (NDAs) signed between us and our clients, providing an extra layer of security against unauthorized use.

Crafting effective prompts for optimal responses

Well-structured prompts are fundamental to data security in LLM chatbots. They act as instructions, guiding the LLM to generate secure responses. Careful prompt engineering can reduce the risk of producing security-breaching outputs. 

For instance, prompts can be designed to steer clear of confidential topics or accessing sensitive data. This approach also helps in maintaining compliance with regulatory requirements and organizational policies.

However, it’s important to acknowledge that prompt engineering alone is a risk management strategy, rather than a foolproof solution. Continuous monitoring of the chatbot’s performance, ongoing refinement of prompts based on real-time feedback, and the integration of rule-based systems are essential components of a comprehensive security framework. 

Implementing hybrid approach for enhanced control

Combining LLM models with answers based on previously set rules can be employed to further enhance data security. It allows us to intercept specific queries and provide predefined responses, ensuring a controlled and secure interaction environment.

By pre-defining responses for certain scenarios, we can reduce the risk of inappropriate or damaging interactions. This hybrid approach can also provide fallback mechanisms in case the LLM generates confidential outputs.

Ongoing monitoring and training

Keeping data secure extends beyond initial deployment and requires ongoing monitoring and training. Regular chatbot audits can help identify and address potential security issues or inaccuracies. These measures ensure that the chatbot evolves in alignment with changing business policies and emerging security regulations.


LLM-based chatbots pose a unique challenge for data security. Adopting a hybrid model that combines LLMs with predefined answers based on previously set rules can improve control over interactions, protecting sensitive information.

Ongoing monitoring and training are crucial to address new challenges and continuously improve response quality. Ultimately, by implementing these strategies, we can create secure chatbot experiences, building trust and reliability with its users.


Partner with us to build secure and reliable chatbot experiences that empower your business and foster trust with your customers.