The real issue seems to be the data governance and people forgetting good data governance when they interact with AI. Does it matter if you are asking Chat GPT

The real issue seems to be the data governance and people forgetting good data governance when they interact with AI. Does it matter if you are asking Chat GPT to organize this list of PII or asking a random Reddit user to organize it, both are leaking data to an unauthorized third party that can leak it elsewhere. If the model is entirely self hosted and is treated similar to a database so that any PII it is given means the model is treated as always having that PII in it, even if the average user can't find a way to extract it, then the privacy concerns are no different than using any other self hosting application that can store data. You will need to treat it like a data source where all users have either full admin access or no access, unlike a database where you can delegate well controlled partial access. On the copyright side, that seems more uniquely tied to current AI technology so the accusation of AI being a buzzword wouldn't apply.