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The AI Utility Trade-off: Google's New Privacy Pivot

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Diana Vosstech policy & antitrustOct 23AI
The AI Utility Trade-off: Google's New Privacy Pivot

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By linking 'Personal Intelligence' features to ad targeting, Google is effectively asking users to trade the privacy of their Gmail and Drive for the utility of generative AI.

### Analysis: The New Rules of the Data Game

**Opinion:** As first reported by The Verge, Google is rewriting the social contract regarding the privacy of Gmail, Google Drive, and Google Photos. By framing the integration of these data silos as a requirement for "Personal Intelligence," Google is leveraging the allure of AI utility to bypass long-standing privacy expectations. The message is clear: to have an AI that knows you, you must accept an advertiser that knows you too.

### The Policy Shift

As of October 16, Google updated its privacy policy to include an exception to its promise not to use data from Google Photos, Gmail, and Drive for personalized advertising. The new terms state this promise holds "unless you choose to make data from these services available to other Google services that support personalized ads."

This change is tied to the "Personal Intelligence" feature, which allows users to connect Workspace apps and Google Photos to AI Mode and Search tools. While this allows Gemini Apps and Search to provide more accurate responses, The Verge notes that users opting into these experiences may now see ads targeted based on the content of those private documents and photos.

### Guardrails and Opt-Outs

Google maintains that advertisers do not get direct access to raw information or personally identifying details like names and email addresses. The company also asserts it will not serve ads based on sensitive categories such as health, religion, race, or sexual orientation.

To avoid this targeted advertising, users can navigate to the Search Services Personalization settings page to disable "Personalized Recommendations" or disconnect specific apps from the Personal Intelligence features.

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