No matter how chatty AI conversations may feel, always approach these interactions as you would a dialogue with a stranger. You would never tell even the friendliest stranger your bank account number, right? So don’t tell it (or any other sensitive, personally identifiable information) to tech, either.
When Amazon’s virtual assistant, Alexa, first came out, loads of people loved asking “her” goofy questions, just to hear the smart home device fire back absurd (and often funny) responses.
More recently, the fun has continued with tools like ChatGPT, where people upload photos and ask AI to create playful art of themselves, their pets, or imaginary scenarios.
That entertainment factor, though, has quietly made many of us more comfortable sharing information and asking questions without thinking twice. Which raises an important question: how safe is it, really?
The bottom line is this: as helpful or entertaining as AI can be, it isn’t just a toy.
Fortunately, protecting yourself doesn’t require technical know‑how. A good rule of thumb is to treat AI interactions—especially chatbots—like a public forum. In other words, if you wouldn’t post something on social media, it’s best not to share it with AI‑powered tools either.
The risk of sharing personal information in the age of AI
AI tools are designed to improve over time by learning from user interactions. That means the information you share helps shape how these systems respond. Companies like OpenAI, which created ChatGPT, have publicly acknowledged that user inputs may be stored and reviewed to improve performance.
While that can make AI more helpful, it also raises important questions about how your personal information might be handled in the long run. What happens if a company experiences a data breach and stored prompts or conversations are exposed? Or if a platform is acquired and privacy policies change, leaving users with fewer protections than they originally expected?
There’s also a bigger picture to keep in mind. Scammers already rely on AI to sift through social media and personalize attacks that feel surprisingly real. In the same way, access to someone’s AI interactions could one day reveal habits or vulnerabilities that bad actors might exploit.
AI chatbot scams
Chatbots are computer programs designed to simulate conversation either through typed messages on a screen or spoken responses. You might find them embedded on websites or apps, offering quick help or answering common questions.
While many are legitimate, it’s important to remember that chatbot conversations don’t always come with the same safeguards as speaking directly with a person.
The Bank of Colorado warns specifically about fake customer service chatbots. When a victim clicks a link to one of these fake customer service chatbots, they are prompted to verify their identity by sharing login credentials, financial details, or other sensitive information. When the target does so, the scammer uses it to commit identity theft.
“Don’t enter sensitive information in a chat,” warn the bank’s pros. “Legitimate companies will never ask for full account numbers, passwords, or Social Security numbers via chatbot.” When in doubt, disconnect with the bot and contact the company anew. If possible, call to speak to a human.
Avoid sharing this info with AI chatbots
AI can be an incredible tool for creativity, but it’s still important to pause before sharing personal details.
"Trends that seem innocent on the surface can come with very real, very permanent implications for privacy,” says Dan Charwath, Director of Product Commercialization at Allstate Identity Protection. “Before we feed more of ourselves into the machine, it’s worth pausing to ask: Is this data I’m willing to give away forever?”
Keeping that in mind, it’s best to stay on the safe side and avoid sharing anything from the following categories with AI‑powered apps or devices:
Personally identifiable information (PII): Your full name, birth date, hometown, Social Security number, addresses, email addresses, and phone numbers
Financial information: The specific kinds of credit cards you have, the names of your banks, lenders, and cash apps, as well as your account numbers and usernames
Login credentials: Usernames, passwords, security questions and answers, and recovery phone numbers and email addresses
Medical details: Health insurance information, medications, diagnoses, and test results
Business details: Industry secrets, company politics, insider deals, and proprietary information
Asking AI for help brainstorming ideas, summarizing general topics, or rewriting non‑sensitive content is typically low risk, as long as personal details stay out of the conversation.
AI’s role in identity fraud
85 percent of identity fraud cases involved generative AI, according to the U.S. Department of Homeland Security
Identity fraud involving AI‑generated forged documents surged from 0 percent to 57 percent between 2021 and 2024, according to Finextra
More ways to protect your privacy in the age of AI
Being cautious with what you share is a strong starting point. There are a few additional habits that can help reduce your risk when using AI‑powered tools:
Check privacy settings and policies. Take a moment to understand how an AI tool handles your data, including whether conversations are stored, used for training, or shared with third parties.
Limit personal details, even when prompted. If an AI tool asks for information that feels unnecessary to complete a task, pause and reconsider. The less personal data you share, the lower the risk.
Trust your instincts. If an interaction feels rushed, overly personal, or just “off,” it’s okay to stop engaging.
Keep software and devices up to date. Regular updates help patch security gaps that scammers and malware often exploit.
AI can be a powerful and helpful tool, but like any new technology, it’s safest to use it with intention. A little awareness goes a long way toward protecting your personal information.
