Anthropic is easing a controversial data storage policy after enterprise pushback, The Decoder reports. The change lets enterprise customers keep their own data going forward, addressing a concern that matters directly to companies adopting AI tools at scale.

Data retention rules are a core buying issue for business AI customers. Companies need to know where prompts, outputs, files, and operational data are stored, how long they remain there, and who can access them.

The reversal shows how enterprise customers can shape AI product policy when governance concerns threaten adoption. It also underlines a broader lesson for AI vendors: model quality is only one part of the sale when customers have legal, security, and compliance requirements.