Google's AI features could expose Gmail data to ad targeting

Google has changed its privacy policy to allow data from Gmail and Google Photos, when used with its AI features, to be used for targeted advertising. The change, first reported on October 23, 2026 by The Verge and Ars Technica, means that if you enable Google's 'Personal Intelligence' tools, your personal emails and photos could influence which ads you see.

Why it matters

This is a significant shift for Google, which had previously promised not to use data from Gmail or Google Photos for ad targeting. According to The Verge, the updated policy introduces an exception: if you turn on personalized AI features, Google can use the data you share with these tools to inform ads. This includes information from your email inbox or images stored in Google Photos.

Ars Technica reports that the change is triggered by activating 'Personal Intelligence', Google’s term for its new generation of AI-powered search and assistant features. When you use these, Google gains explicit permission to analyze and repurpose your data for advertising. According to Google, this is about providing more relevant ads based on the context you create by using its AI tools.

How the policy update works

The update allows Google to use data from Gmail and Google Photos, but only if you enable its AI-driven 'Personal Intelligence' features. Previously, Google’s policy stated that data from Gmail, Drive, and Photos would not be used to target ads. Now, an exception says that data accessed by AI tools can be repurposed for advertising.

Android Authority first noticed the change in Google’s privacy documentation. Google News AI reports that the data is shared with Google's AI search, which can then inform targeted ads. This means if your business uses Gmail or Photos and you opt in to these AI features, your internal communications and stored images might contribute to Google’s ad profile of your account.

Google has not specified exactly what data will be used or how granular the targeting will get. What is clear is that the policy change opens the door to more personalized advertising, based on previously off-limits personal data.

What this means if you run a business

If your company relies on Google Workspace tools, this policy shift affects both privacy and data security. Once you enable Google’s AI features, some of your business’s internal emails and shared photos may be used to refine the ads presented to your employees, or potentially customers if they interact with your workspace environment.

For companies with strict privacy or compliance requirements, this is a new risk. Business owners should review which AI-driven features are enabled in their Google accounts and communicate to staff what data could be exposed to Google’s ad systems. You may need to revisit your data handling policies, especially if you work in regulated industries or handle client-sensitive information.

There is no indication yet that Google will let users selectively block this data use while still accessing AI features. Until more granular controls are available, business operators face a choice: access the latest AI tools or maintain a higher level of data separation from Google’s advertising engine. For some, it may be time to audit which accounts have Personal Intelligence enabled and consider alternatives if privacy is paramount.

For more on how AI product decisions affect business data, see our coverage of Canva’s approach to AI art costs and Anthropic’s recent warning on AI risk in the UK.