Skip to main content
AI & Privacy

How Data Brokers Feed AI Systems: The Privacy Risk Nobody's Talking About

Discover how data brokers secretly fuel AI systems, putting your privacy at risk. Learn what's happening behind the scenes and what you can do to protect yourself.

Written by GhostMyData TeamFebruary 18, 202614 min read

The artificial intelligence revolution has brought unprecedented convenience to our lives—from personalized recommendations to intelligent assistants that understand natural language. But beneath the surface of these technological marvels lies an uncomfortable truth: AI systems are being trained on your personal information, often without your knowledge or meaningful consent. And the pipeline feeding your data into these AI models? Data brokers.

While much attention has focused on how social media companies use your information, a more insidious data flow operates largely in the shadows. Data brokers—companies that collect, aggregate, and sell personal information—have become the primary suppliers for AI training datasets. Your address, phone number, browsing habits, financial details, and even your political leanings are being packaged and sold to train the next generation of AI models.

This isn't just a theoretical privacy concern. It's happening right now, at scale, and the implications extend far beyond targeted advertising.

How AI Systems Collect and Use Your Data

Modern AI systems, particularly large language models and machine learning algorithms, require massive amounts of data to function effectively. The more data they consume, the better they perform. This insatiable appetite for information has created a booming market where your personal data is the primary commodity.

AI companies acquire personal data through several channels:

  • Direct scraping of publicly accessible websites, social media profiles, and online forums
  • Purchasing datasets from data brokers who aggregate information from thousands of sources
  • Third-party partnerships with apps, services, and platforms that collect user data
  • User-generated content submitted through AI interfaces (which often becomes training data)
  • Synthetic data generation based on real personal information patterns

The data broker connection is particularly concerning because these companies operate with minimal oversight. Unlike social media platforms where you at least created an account, data brokers compile dossiers on you from hundreds of sources you've never directly interacted with.

Consider this scenario: You fill out a warranty card for a new appliance. That information gets sold to a data broker. The broker enriches it with your property records, purchasing history from retail loyalty programs, and demographic data from marketing databases. This comprehensive profile then gets packaged into a dataset sold to an AI company training a model for targeted marketing, credit risk assessment, or even hiring decisions.

The data typically includes:

  • Demographic information: age, gender, ethnicity, education level, marital status
  • Contact details: current and historical addresses, phone numbers, email addresses
  • Financial indicators: estimated income, property values, credit behaviors
  • Consumer behavior: purchase history, brand preferences, online browsing patterns
  • Personal interests: hobbies, political affiliations, religious beliefs
  • Family connections: relatives' names, ages, and contact information

What makes this particularly problematic is that AI models don't just use this data temporarily—they learn from it. Your personal information becomes embedded in the model's parameters, potentially influencing how the AI makes decisions about you and millions of others.

Where Your Data Ends Up in AI Training Pipelines

The journey from your personal information to AI training data follows a complex, multi-step pipeline that most people never see. Understanding this flow is crucial to recognizing where your privacy is most vulnerable.

The Data Broker Aggregation Phase

Data brokers like Acxiom, Epsilon, and hundreds of smaller companies continuously harvest information from:

  • Public records: court documents, property deeds, voter registration, business licenses
  • Commercial sources: retail purchases, magazine subscriptions, warranty registrations
  • Online activity: website visits, search queries, social media interactions
  • Financial transactions: credit card purchases, loan applications, banking behaviors

These brokers maintain profiles on virtually every adult in the United States—often containing thousands of data points per person. According to a Federal Trade Commission report on data brokers, a single broker's database contained information on 1.4 billion consumer transactions and over 700 billion aggregated data elements.

The Dataset Compilation Phase

AI companies and research institutions acquire data through several mechanisms:

Commercial purchases: Companies like Scale AI, Appen, and others act as intermediaries, purchasing data from brokers and repackaging it into training datasets. These datasets are then sold or licensed to AI developers.

Web scraping operations: Automated bots crawl billions of web pages, extracting text, images, and structured data. This includes personal information posted on professional networking sites, social media platforms, and public directories.

"Publicly available" datasets: Researchers compile massive datasets like Common Crawl (billions of web pages) or C4 (Colossal Clean Crawled Corpus), which inevitably contain personal information scraped from across the internet.

The Training Phase

Once compiled, your data enters the actual AI training process:

Language models like GPT, Claude, and others are trained on text that includes personal information scraped from websites, forums, and documents. If your name, address, or personal details appear in enough places online, the model may "learn" associations about you.

Recommendation systems use your purchase history, browsing patterns, and demographic information to predict future behavior—not just for you, but for similar users.

Computer vision models may be trained on photos that include faces, license plates, or other identifying information scraped from social media and photo-sharing sites.

Predictive analytics models used for credit scoring, hiring, insurance pricing, and law enforcement risk assessment often incorporate data broker information to make consequential decisions about your life.

The Deployment Phase

The most concerning aspect is what happens after training. AI models don't just passively store your information—they use patterns learned from your data to make inferences about you and others:

  • A hiring AI might discriminate based on zip codes associated with certain demographics
  • A credit model might deny loans based on shopping patterns correlated with financial risk
  • A law enforcement AI might flag individuals based on associations learned from social network data
  • A healthcare AI might make treatment recommendations influenced by demographic stereotypes in training data

The opacity of these systems means you rarely know when an AI trained on your personal information is making decisions that affect your life.

Step-by-Step: How to Opt Out or Remove Your Data

Removing your information from data brokers and AI training pipelines requires persistent effort, but it's one of the most effective ways to protect your privacy. Here's a comprehensive approach:

Phase 1: Identify Your Data Exposure

Start with a free scan to understand your exposure. Services like GhostMyData's free scan can identify which of the 2,100+ data brokers have your information. This is crucial because manually checking even a fraction of these sites would take hundreds of hours.

Search for yourself on major people-search sites:

  • Whitepages.com
  • Spokeo.com
  • BeenVerified.com
  • PeopleFinder.com
  • Intelius.com

Take screenshots of what you find—this documents your exposure and helps track removal progress.

Phase 2: Submit Opt-Out Requests to Major Data Brokers

Each broker has different opt-out procedures, but here are specific steps for some of the largest:

Acxiom (one of the world's largest data brokers):

  • Visit aboutthedata.com
  • Click "Manage Your Data"
  • Create an account and verify your identity
  • Review your profile and select opt-out options
  • Submit and save confirmation

Epsilon:

  • Go to epsilon.com/privacy
  • Navigate to "Consumer Preference Center"
  • Fill out the opt-out form with your details
  • Verify via email confirmation

Oracle (formerly BlueKai):

  • Visit oracle.com/legal/privacy/marketing-cloud-data-cloud-privacy-policy.html
  • Scroll to "Opt-Out" section
  • Use the registry opt-out tool
  • Clear cookies and repeat monthly (their opt-out uses cookies)

Spokeo:

  • Go to spokeo.com/optout
  • Search for your listing
  • Copy the URL of your profile
  • Paste it in the opt-out form
  • Verify via email within 72 hours

Important note: Most opt-outs must be renewed periodically. Data brokers continuously acquire new information, so a one-time removal isn't permanent.

Phase 3: Address AI-Specific Data Sources

Google: Your data may be in Google's AI training datasets through various services:

  • Visit myactivity.google.com
  • Delete activity history across all Google services
  • Go to myaccount.google.com/data-and-privacy
  • Turn off "Web & App Activity" and "Include Chrome history"
  • Submit CCPA/GDPR deletion requests if applicable

OpenAI: While you can't remove data already used for training:

  • Don't share personal information in ChatGPT conversations
  • Review privacy settings at platform.openai.com
  • Submit data subject requests under privacy laws if you're in California or the EU

Meta (Facebook/Instagram): AI training on user content:

  • Go to Settings > Privacy > Privacy Center
  • Review "How Meta uses information for generative AI models"
  • If in the EU, object to processing under GDPR Article 21
  • Submit deletion requests for old posts containing personal information

Phase 4: Prevent Future Data Collection

Implement these protective measures:

  • Use privacy-focused browsers like Brave or Firefox with strict tracking protection
  • Install tracker blockers such as uBlock Origin and Privacy Badger
  • Use masked email addresses through services like Apple's Hide My Email or SimpleLogin
  • Opt out of data sharing in every app's privacy settings
  • Freeze your credit with all three bureaus (prevents data brokers from accessing credit inquiries)
  • Register with DMAchoice.org to reduce direct marketing data sharing
  • Use virtual cards for online purchases to prevent transaction data linkage

Phase 5: Monitor and Maintain

Data removal isn't a one-time task. New information constantly enters broker databases from:

  • Recent purchases and transactions
  • Updated public records
  • New online activity
  • Third-party data sharing

Establish a monitoring routine:

  • Quarterly searches on major people-search sites
  • Annual comprehensive data broker audits
  • Immediate action when you notice new listings
  • Regular review of privacy settings across all online accounts

This is where automated services become valuable. Manually monitoring 2,100+ data brokers is impossible for most people. Services that automate this process can continuously scan and submit removal requests on your behalf, something competitors covering only 35-500 brokers simply can't match in comprehensiveness.

What the Law Says About AI and Your Personal Data

The legal landscape surrounding AI and personal data is evolving rapidly, but current protections remain fragmented and often inadequate for the AI age.

Federal Protections (Limited)

The United States lacks comprehensive federal privacy legislation. The primary federal laws addressing personal data are sector-specific:

Fair Credit Reporting Act (FCRA) - 15 U.S.C. § 1681: Regulates "consumer reporting agencies" but has been narrowly interpreted. Most data brokers claim they don't fall under FCRA because they don't provide reports used for credit, employment, or insurance decisions—even when their data feeds AI systems that do exactly that.

Health Insurance Portability and Accountability Act (HIPAA): Protects health information held by covered entities (healthcare providers, insurers) but doesn't cover health data collected by data brokers, apps, or AI companies that aren't healthcare providers.

Children's Online Privacy Protection Act (COPPA): Protects children under 13 but offers no protection for teens or adults whose data feeds AI training.

State Privacy Laws

Several states have enacted privacy legislation with varying degrees of protection:

California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) - Cal. Civ. Code § 1798.100 et seq.:

The strongest U.S. privacy law includes rights to:

  • Know what personal information is collected and sold
  • Delete personal information (with exceptions)
  • Opt out of the "sale" or "sharing" of personal information
  • Limit use of sensitive personal information

Critically for AI: The CPRA added provisions for "automated decision-making technology" requiring businesses to provide information about the logic involved in automated decisions. However, enforcement has been limited, and many AI companies claim exemptions.

To exercise CCPA rights:

  • Identify the business holding your data
  • Submit a "Verifiable Consumer Request" through their designated method
  • Businesses must respond within 45 days
  • If denied, you can appeal to the California Privacy Protection Agency

Other State Laws:

  • Virginia Consumer Data Protection Act (VCDPA): Similar rights, effective January 2023
  • Colorado Privacy Act (CPA): Includes specific provisions for profiling and automated decisions
  • Connecticut Data Privacy Act: Effective July 2023
  • Utah Consumer Privacy Act: More business-friendly, fewer consumer rights

These laws generally require opt-out rather than opt-in consent and include numerous exemptions that limit their effectiveness against data brokers and AI training.

European GDPR Protections

The General Data Protection Regulation (GDPR) - Regulation (EU) 2016/679 - provides significantly stronger protections:

Article 22: Right not to be subject to decisions based solely on automated processing, including profiling, which produces legal or similarly significant effects.

Article 17: "Right to be forgotten" - stronger deletion rights than U.S. laws.

Article 15: Right to access all personal data a company holds about you.

Data Protection Impact Assessments (Article 35): Required for high-risk processing, including many AI applications.

EU residents can file complaints with their national Data Protection Authority. The GDPR has resulted in significant fines for companies mishandling personal data, including for AI-related violations.

The AI Act (EU)

The European Union's AI Act, adopted in 2024, is the world's first comprehensive AI regulation. It:

  • Bans certain AI practices (social scoring, real-time biometric identification in public spaces)
  • Classifies AI systems by risk level with corresponding requirements
  • Requires transparency about AI-generated content
  • Mandates human oversight for high-risk AI systems
  • Includes substantial fines (up to €35 million or 7% of global revenue)

Current Legal Gaps

The problems with existing law:

Data brokers exploit loopholes: Most claim they're not "selling" data but "sharing" it, or that they only provide "publicly available" information, exempting them from many regulations.

AI training claimed as "research": Many privacy laws exempt research, and AI companies argue that training models constitutes research.

No right to know if your data trained an AI: Current laws don't require disclosure when your personal information is used in AI training datasets.

Weak enforcement: Even where laws exist, enforcement agencies are understaffed and overwhelmed.

No private right of action: Most state privacy laws don't allow individuals to sue for violations (except in specific circumstances), limiting accountability.

What's Coming Next in AI Privacy Regulation

The regulatory landscape is shifting rapidly as lawmakers recognize the unique risks posed by AI systems trained on personal data.

Federal Legislation in Development

The American Data Privacy and Protection Act (ADPPA): Bipartisan federal privacy legislation that advanced through committee in 2022 but stalled. If revived, it would:

  • Create baseline national privacy standards
  • Establish data minimization requirements
  • Provide opt-in consent for sensitive data
  • Create a private right of action for violations
  • Preempt some state laws (controversial provision)

AI-Specific Federal Proposals: Multiple bills addressing AI have been introduced, including:

  • The Algorithmic Accountability Act (requiring impact assessments for automated decision systems)
  • The AI Training Act (addressing copyright and data rights in AI training)
  • The No Section 230 Immunity for AI Act (removing liability protections for AI-generated content)

State-Level Innovation

California continues leading with potential CPRA amendments specifically addressing:

  • AI training data transparency requirements
  • Mandatory disclosure when AI systems make consequential decisions
  • Stronger enforcement mechanisms for automated decision-making violations

New York is considering the AI Accountability Act, which would:

  • Require impact assessments for AI systems used in employment, housing, credit, and education
  • Mandate disclosure of training data sources
  • Create penalties for discriminatory AI systems

Illinois already has the Biometric Information Privacy Act (BIPA), the strongest biometric privacy law in the U.S., which has been applied to AI systems using facial recognition.

International Developments

Canada's AI and Data Act (AIDA): Part of Bill C-27, would regulate high-impact AI systems with requirements for:

  • Risk assessments and mitigation measures
  • Transparency about AI system capabilities and limitations
  • Human oversight of consequential decisions

Brazil's LGPD: Similar to GDPR, with enforcement increasing and specific attention to automated decision-making.

China's Personal Information Protection Law (PIPL): Includes specific provisions for automated decision-making and requires that individuals can refuse profiling.

Industry Self-Regulation Attempts

Facing regulatory pressure, tech companies are proposing self-regulatory frameworks:

Partnership on AI: Industry consortium developing best practices (critics note lack of enforcement mechanisms).

AI Safety Institutes: Government-backed organizations in the U.S. and UK evaluating AI risks, though focused more on existential risks than privacy.

Model Cards and Data Cards: Voluntary documentation of AI models and training datasets, promoted by researchers but rarely comprehensive about personal data use.

What to Expect in the Next 2-3 Years

Likely developments:

Mandatory AI disclosure requirements: Expect laws requiring companies to disclose when AI systems make decisions affecting consumers, particularly in employment, credit, housing, and healthcare.

**Training data transparency

ai-privacyprivacydata removaldata brokers AIAI personal datadata broker AI training

Ready to Remove Your Data?

Stop letting data brokers profit from your personal information. GhostMyData automates the removal process.

Start Your Free Scan

Get Privacy Tips in Your Inbox

Weekly tips on protecting your personal data. No spam. Unsubscribe anytime.

Related Articles