Is this policy legally compliant out of the box?

It produces a solid, transparency-focused draft aligned with common GDPR, CCPA, and EU AI Act expectations, but it is a template, not legal advice. Have counsel review it against your actual processing, jurisdictions, and contracts before publishing.

Why disclose which AI providers I use?

When customer data is processed by a third-party model provider, that provider is usually a processor or sub-processor and transparency rules often expect you to name the category or identity of recipients. Disclosing providers also builds trust and pre-empts data-transfer questions.

What should the opt-out cover?

At minimum, the ability to decline non-essential AI processing such as personalisation or training on their data. Where AI use is core to the service you can explain that, but you should still avoid using customer content to train models without a clear lawful basis or consent.

Do I need to mention automated decision-making?

If AI makes or significantly informs decisions that have legal or similarly significant effects on a person — pricing, eligibility, fraud blocking — yes. GDPR Article 22 and similar rules expect you to disclose it and offer human review, which this policy flags.

Is the text I enter sent anywhere?

No. The generator assembles the policy entirely in your browser from your inputs. Nothing is uploaded or stored, so you can safely draft using internal product details.

AI Customer Data Use Policy Generator

Tell customers how you use AI with their data

Customers increasingly expect a clear answer to “what does your AI do with my data?” — and regulators increasingly require one. This generator turns a short description of your product and its AI uses into a customer-facing policy covering what data is processed, why, which providers are involved, whether decisions are automated, and how to opt out. It builds the document in your browser; nothing you enter leaves the page.

How it works

You describe your product, the customer data involved, and each way you use AI (support, recommendations, content generation, fraud scoring, and so on). You indicate whether an opt-out exists, whether any AI-driven decisions are fully automated, and which model providers you want to disclose. The tool assembles these into a structured policy with sections for data used, purposes, provider disclosure, automated decision-making and human review rights, opt-out mechanics, retention, and contact. A copy button drops the formatted text straight into your privacy center.

Tips and notes

Name your providers. Listing the model vendors you rely on is a transparency expectation and a trust signal.
Be honest about training. If you do not train on customer content, say so — it is one of the most reassuring lines you can include.
Flag automated decisions. If AI materially affects a person, disclose it and offer human review.
Have counsel review. This is a strong template, not a legal opinion for your specific processing and jurisdictions.