AI, Privacy & PII: What Businesses Need to Know

Artificial intelligence (AI) tools have become essential in today’s workplace. From automated meeting transcripts to voice-enabled assistants and customer service recordings, businesses are increasingly relying on AI to boost productivity and streamline communication. But with convenience comes responsibility, especially when it comes to protecting sensitive information.

As AI continues to record, transcribe, and analyze workplace conversations, there’s a growing need to consider what’s being captured. One of the biggest concerns is the presence of personally identifiable information (PII) in these digital records. Businesses must be cautious about how this data is stored, shared, and protected.

How AI is Transforming Communication in Business

AI transcription and recording tools are becoming standard across industries. Whether it’s a platform that summarizes meetings, transcribes video calls, or AI voice assistants capturing commands, these tools help organizations document conversations and increase efficiency.

While these tools are undeniably helpful, they often capture more than just general discussion.
Examples of PII commonly captured by AI transcription tools, include:
 

• Employee financial details
• Health information about employees
• Details about ongoing workplace investigations

If not properly managed, this information can become a risk.

What is PII and Why It Matters

Personally identifiable information (PII) includes any data that can be used to identify an individual. This might include names, Social Security numbers, home addresses, credit card details, health information, etc..
In a typical business meeting or customer interaction, this type of information can come up naturally, and when AI is involved, it may be recorded and stored indefinitely. The presence of PII in AI-generated content raises both ethical and legal questions.

Privacy Risks in AI Transcription and Recording

Many AI tools operate in the cloud, meaning transcripts and recordings are stored on third-party servers. Without clear controls and protections, that data may be accessed by unauthorized users, improperly shared, or even exposed in a breach. Businesses also face risks when employees or contractors download or share recordings without considering the sensitivity of their contents.

Without clear policies and oversight, even well-intentioned use of AI can lead to the mishandling of private information.

Best Practices for Businesses

To protect PII and reduce risks, businesses should take a proactive approach:
 

• Establish clear policies on when and how recording and transcription tools are used.
• Choose vendors carefully, ensuring they meet high standards for encryption, access controls, and compliance.
• Redact or anonymize PII from transcriptions when the data is not essential.
• Train employees on data privacy, emphasizing the importance of caution when handling recorded content.
• Don’t record conversations you know will contain PII. Saved files, like recordings and transcripts, are considered discoverable if a legal issue were to arise in the future.

Legal and Ethical Responsibilities

Beyond compliance, businesses have a responsibility to protect the trust of their employees, clients, and customers. Mishandling PII—whether through negligence or ignorance—can damage relationships and create lasting consequences. Taking steps to secure data is not just a legal requirement but a business imperative.

Put Privacy into Practice with Landrum HR Solutions

AI tools offer tremendous benefits, from better documentation to enhanced decision-making.; But they should be used thoughtfully.  Protecting PII in transcripts and recordings is one of the most important steps any organization can take to ensure it is using AI both responsibly and ethically.

From policy development to employee training, Landrum HR Solutions is here to support responsible AI practices that align with your values and protect your workforce. For over 50 years, we’ve supported organizations with HR support, including compliance.

As new technologies, like AI transcription, evolve and take hold, we evolve too. We ensure your organization has the right policies and communication plan.

Contact our team to learn how we can support your organization put the right processes in place.