Dropbox faces backlash over OpenAI data sharing

CEO denies auto-sending data

Cloud storage giant Dropbox is under scrutiny after revelations that a new setting, enabled by default, shares users' data with OpenAI when using an AI-powered search feature.

The news gained traction on social media, raising concerns among users about data privacy.

Writer Winifred Burton first brought attention to Dropbox's third-party AI setting via Bluesky. AI critic Karla Ortiz also joined the conversation, sharing concerns about Dropbox opting users in without clear notification, especially considering the potential involvement of sensitive data.

Dropbox responded that the third-party AI models it uses are solely there to provide answers to user search queries.

The company stressed that internal models are not trained on user data. It added that any data shared with third-party servers, including OpenAI, is deleted within 30 days.

Dropbox CEO Drew Houston apologise for the confusion on Twitter. He said the third-party AI toggle in the settings menu doesn't automatically or passively send any Dropbox customer data to a third-party AI service.

"Third-party AI services are only used when customers actively engage with Dropbox AI features which themselves are clearly labeled," he wrote.

Critics still argued that clearer communication was needed to avoid confusion, highlighting the importance of transparency in AI-related changes.

The controversy revolves around Dropbox's AI-powered feature Dash, which the company introduced in July 2023. This universal search tool leverages AI to connect various work platforms, such as Microsoft Outlook and Google Workspace, streamlining searches and potentially saving users time.

According to the FAQ, the third-party AI toggle is a part of the "Dropbox AI alpha," which includes an interface allowing users to explore file contents using a bot similar to ChatGPT.

The third-party AI toggle is enabled by default for participants in the alpha.

The alpha is currently available only to users who have set their preferred language to English, excluding users in Canada, the UK and the European Economic Area. This means users in the EU, UK, and Canada have been opted-out, while the rest of the world, including the USA, has been opted-in by default.

It's also worth noting that Dropbox AI is exclusively for those on paid plans, including Dropbox Professional, Business, Business Plus, Essentials and some customers on Dropbox Advanced and Standard. Free users are unlikely to be affected by the default opt-in issue.

A representative from Dropbox told Ars Technica that the third-party AI toggle is designed to offer eligible customers the chance to explore new AI features and functionalities, such as those provided by Dropbox AI.

"It does not enable customers to use these features without notice. Any features that use third-party AI offer disclosure of third-party use, and link to settings that they can manage."

Dropbox specified that only content relevant to explicit requests or commands is sent to third-party AI partners for generating answers, summaries or transcripts.

For users concerned about their data being shared with third parties outside of Dropbox, the company has provided a step-by-step guide to disable the AI feature.

Users can log into their Dropbox account on a desktop web browser, navigate to Settings > Third-party AI, and toggle the switch to "Off".

The situation underscores the growing need for companies to communicate clearly with users about AI features and data-sharing practices, ensuring that users have the information and control they need to make informed decisions about their privacy.