What is zero data retention?

Definition

Zero data retention is a commitment, usually from a model provider to a business customer, that inputs and outputs aren't stored after the request is handled (sometimes with narrow exceptions, such as abuse monitoring). Exact terms vary by provider and contract.

Advisor-tech vendors sometimes say they have zero data retention with the model provider they use, which means the model provider doesn't keep your data even though the vendor itself might.

Why it matters for advisors

It narrows where client data lives. If the model provider keeps nothing, the risk sits mainly with the vendor you contract with, which is easier to oversee.

It doesn't remove your own recordkeeping obligations. If the output is a record, you still need to keep it somewhere you control.

It's usually offered on enterprise or API plans, not on free or standard accounts, and may need a separate agreement. If a vendor claims it, ask for the contract language and whether any logs are kept for abuse monitoring.

Example

A notetaker vendor confirms in writing that its model provider operates under zero data retention, and that the vendor stores transcripts for 90 days before deletion. The firm archives final summaries itself.

Watch out for

Ask exactly who the commitment covers and what exceptions apply. "Zero" in marketing copy may not mean zero in the contract.