Google has updated its privacy policy wording to add an exception to its previous statement that content from Gmail, Google Drive and Google Photos would not be used for personalised ads. According to reporting by The Verge, the revised text says this does not apply if a user chooses to make data from those services available to other Google services that support personalised advertising.

While the exact practical scope will depend on how Google implements these settings and how users enable AI-related features, the update is important for businesses because it affects how data may move across Google services when employees or customers use personalised AI and search tools.

What happened

The reported policy change was added on October 16. The new wording introduces an exception to Google's earlier commitment on Gmail, Drive and Photos data. The exception applies when users choose to make data from those services available to other Google services that support personalised ads.

The Verge report links the change to Google's personalised AI features, including AI Mode and other Search tools. Based on that reporting, users who connect data from Gmail, Drive or Photos to these features could potentially enable broader use of that information within Google's ecosystem.

At this stage, the key confirmed development is the policy wording change. Businesses should distinguish between that confirmed update and any broader assumptions about how extensively data will be used in practice, which may depend on account settings, product design and user choices.

Why it matters for European businesses

For European companies, this matters less as a consumer advertising story and more as a data governance and privacy management issue. Many businesses rely on Google services across email, cloud storage, search visibility, advertising and employee productivity. When boundaries between those services change, even through optional settings, companies may need to review how staff use them.

Several practical issues stand out:

• Employee use of AI features: If staff connect Gmail, Drive or Photos to AI search or assistant features, business-related information could potentially become available to additional Google services depending on configuration and account type.
• Separation between work and personal accounts: Many SMEs operate with a mix of Workspace and personal Google accounts. A policy change affecting consumer or mixed-use accounts can create confusion about what data is being shared and under which settings.
• Privacy transparency: Companies that advise customers to use Google-based services, integrations or support workflows may need to be clear about which tools involve personalised processing and which do not.
• Compliance risk assessment: For organisations subject to GDPR or internal data-handling policies, optional AI features that extend data access across services may require review before employees are encouraged to use them.

This is also relevant in the wider context of AI-enabled search and assistants. As large platforms connect email, cloud files and photos with generative AI experiences, businesses should expect more questions about purpose limitation, user consent, access controls and data-sharing defaults.

Who may be affected

• SMEs using Google Workspace or Google consumer services for email, storage and collaboration.
• Marketing teams using Google's advertising and analytics ecosystem alongside Search AI features.
• Founders and small business owners who rely on personal Google accounts for business activity.
• IT and security teams responsible for account settings, data governance and acceptable use policies.
• Regulated businesses that must control how business data is processed, shared and exposed to third-party or cross-service AI tools.

The impact may vary depending on whether an organisation uses consumer Google accounts, Google Workspace accounts, centrally managed admin controls or bring-your-own-account workflows.

What companies should consider

• Review account settings and admin controls: Check whether employees can connect Gmail, Drive or Photos data to AI or Search features, and whether those settings are centrally manageable.
• Clarify which accounts are used for work: Reduce reliance on personal Google accounts for business communications and documents where possible.
• Update internal guidance on AI tools: Make sure staff understand that enabling helpful AI features can also change how data is shared across services.
• Assess privacy and compliance implications: If your business handles customer, HR, financial or other sensitive information, review whether optional cross-service AI features fit your existing data protection approach.
• Check customer-facing disclosures: If your business uses Google-based workflows in support, marketing or service delivery, ensure privacy notices and internal records remain accurate.
• Watch for further clarification: Because the reported development is based on a policy change, companies should monitor official Google documentation for clearer detail on product scope, controls and account-specific behaviour.

For European businesses, the broader lesson is straightforward: when AI features are integrated into core productivity and search tools, data-sharing assumptions can change quickly. Even when the feature is optional, companies should verify what is enabled, what data is involved and whether the default setup still matches their privacy and governance requirements.