How Claude Code Handles Your Data: AI Privacy Explained
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How Claude Code Handles Your Data: AI Privacy Explained

Understanding how AI tools like Claude Code process client data without storing it in the model. A transparent look at data privacy in modern AI workflows.

February 4, 2026 6 min read

# How Claude Code Handles Your Data: AI Privacy Explained

One of the most common questions we get from clients is: "When you use AI to analyze our data, does that data get stored in the AI?"

It's a valid concern. With AI tools becoming integral to marketing workflows, understanding where your data goes—and where it doesn't—matters. This post breaks down exactly how we use Claude Code at WE-DO, and why your data remains private.

The Short Answer

No, your data is not stored in the AI model. When we use Claude Code to analyze your Google Analytics, run keyword research, or review your campaign performance, that data exists temporarily in the conversation and then disappears. It never becomes part of the AI's training data or persistent memory.

How Claude Code Actually Works

Claude Code is an AI assistant that runs locally on our computers. It connects to various data sources through secure integrations called MCP (Model Context Protocol) servers—think of these as secure bridges between the AI and your data.

Here's the actual data flow when we analyze your metrics:

  1. We ask a question — "How is organic traffic performing this month?"
  2. Claude Code calls the integration — It connects to Google Analytics via secure API
  3. Data is fetched directly — Google's servers send data straight to our local machine
  4. Analysis happens locally — Claude Code processes the data and provides insights
  5. Session ends — The data in context is cleared

The key point: your data travels directly between our computer and the data source (Google, your CRM, etc.). It does not pass through Anthropic's servers for storage.

Where Data Actually Lives

LocationPersistent?Contains Your Data?
AI Model WeightsYes (but static)No — frozen at training
Conversation ContextSession onlyYes — temporarily
Our Local MachineYesYes — conversation logs
Source APIs (Google, etc.)YesYes — source of truth

Understanding Each Layer

AI Model Weights: The neural network powering Claude was trained on public data with a cutoff date. Nothing from our client conversations ever modifies those weights. The AI literally cannot "learn" your specific data in a persistent way.

Conversation Context: During an active work session, the AI can see and process data we retrieve. When we close the session, this context is cleared completely. The next session starts fresh—no memory of what we discussed before.

Local Storage: We maintain conversation logs on our machines for reference and continuity. These are subject to our standard data handling practices and client confidentiality agreements.

What This Means for You

Your Data Is Not Used for AI Training

Anthropic (the company behind Claude) does not receive your analytics data, customer information, or any business-specific data through our usage. The data stays within the direct path:

Our Computer → Your Authorized Service (Google, etc.) → Response → Our Computer

The AI processes it in context but doesn't "learn" from it or store it anywhere.

Session-Based Memory Only

Each time we start a new Claude Code session, it has no memory of previous work. We reload relevant context (like project notes) manually. This means:

  • No persistent profile of your business is built within the AI
  • Previous analyses don't influence future sessions
  • Each session is independent and isolated

Secure API Connections

When we access your data:

  • We use authenticated API connections (OAuth)
  • Data is encrypted in transit
  • Access is limited to accounts you've authorized
  • No data is stored on third-party AI servers

How This Differs From Other AI Tools

AspectClaude CodeClaude.ai (Web)ChatGPT
Local Tool AccessYesLimitedNo (uses plugins)
Direct API IntegrationNativeNoNo
Data RoutingLocal machineCloud-basedCloud-based
Persistent MemoryNoNoOptional
Training on Business DataNoNoNo

Both Anthropic and OpenAI have policies against using business/API data for training. However, Claude Code's local architecture provides an additional layer of separation—your data never even reaches their servers during our workflow.

A Practical Example

When we pull your Google Analytics data, here's exactly what happens:

  1. Claude Code runs on our MacBook
  2. We ask: "Show me organic traffic trends for January"
  3. Claude Code calls the Google Analytics API using our authorized credentials
  4. Google's servers return the data directly to our machine
  5. Claude Code processes and displays the analysis
  6. When the session ends, the data in context is cleared

At no point does your analytics data travel to Anthropic's servers or get incorporated into the AI model.

Why Transparency Matters

We believe clients should understand exactly how their data is handled. AI tools are powerful, but that power comes with responsibility. By using locally-run tools with direct API integrations, we can leverage AI capabilities while maintaining the privacy and security your business deserves.

Questions?

If you have questions about how we handle your data or would like more details about our security practices, reach out anytime. We're happy to walk through the specifics for your situation.


At WE-DO, we use AI tools to work smarter for our clients—but never at the expense of data privacy. Want to learn more about how we approach technology in our marketing work? Get in touch.

About the Author
Mike McKearin

Mike McKearin

Founder, WE-DO

Mike founded WE-DO to help ambitious brands grow smarter through AI-powered marketing. With 15+ years in digital marketing and a passion for automation, he's on a mission to help teams do more with less.

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