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What private AI means
Private AI is AI where the provider cannot read your prompts. Not will not — cannot. That distinction is the whole subject, and almost every disagreement about what counts as private AI is really a disagreement about which of those two words applies.
Most products marketed as private AI mean the first one. They process your text in plain form on their servers and govern access with policy. That is a real commitment, and for plenty of use cases it is enough. But it is a promise about behaviour, not a property of the system, and it can be revised, overridden, or breached.
Why it matters now
AI stopped being a writing tool. It now sees medical questions, legal strategy, client notes, financial detail, source code, and the half-formed reasoning people would not put in an email. The sensitivity of what goes into a prompt has climbed far faster than the guarantees around it.
For regulated professionals — therapists, lawyers, accountants, clinicians — the gap is sharper still, because their obligation is to the confidentiality of someone else's information, and “the vendor promised” is not a defence they get to make.