[centur]

I think it has less to do with the fact of putting data somewhere, but with the way data is accessed. When you store something in S3 - you can encrypt it, in addition to built-in encryption. You have control (more or less) over your data in your cloud tenants and databases. Not with AI models trained on your data. You can't even extract\remove it or see how it's used. Literally - zero traceability and transparency. This is the problem, not the fact that it's not stored on your physical hardware.

I suspect when any AI model will start using patents databases for training - it will be a watershed moment for what one can do with open data. Old regulations simply would not put up any meaningful fight against volume and quality of model hallucinations, that may become valuable and patentable inventions and improvements according to the same regulations.