How Do You Handle AI Privacy on Windows?

I've been thinking about how people are handling privacy when using AI tools on their computers.

Some AI applications can process documents, emails, screenshots, or other information from a user's system. That raises questions about what information is being sent to external services and how that information is handled.

For those using AI regularly, what privacy precautions do you take before allowing an AI application to access files or other personal information?

Do you prefer keeping sensitive files completely local, using applications with privacy controls, or simply avoiding sensitive information in AI tools?

I'm interested in hearing what approaches other Windows users are actually using.