What is Private AI vs Confidential AI?

Private AI is quietly challenging the assumption that intelligence must come at the cost of data privacy. However, public AI is still booming, but at what cost?

From ChatGPT to Copilot, generative AI tools have exploded in popularity, activating the full potential of AI. Their scope seemingly covers every area, from writing to customer support. 

But as these tools continue to dominate the mainstream, privacy concerns are catching up. When you enter a prompt, share a document, or fine-tune a model, where exactly does your data go?

For privacy-conscious individuals and enterprises, this tradeoff isn’t theoretical. The idea that AI models might reuse prompts, leak proprietary data, or violate regulatory compliance has shifted the conversation toward private and secure alternatives.

Private AI and Confidential AI are two approaches that prioritize privacy by design. Moreover, they show a future where AI models can be powerful without compromising privacy. And thanks to new decentralized infrastructure from platforms like iExec, privacy-first solutions are live, scalable, and ready to deploy.

What is Private AI?

Private AI refers to artificial intelligence systems and workflows designed to preserve user and enterprise data privacy by default. These systems operate under the assumption that all data involving training data, inference inputs, and model outputs should remain within a trusted, controlled environment.

Private AI vs Public AI

Key technologies that support Private AI include:

  • Federated Learning: Model training occurs locally across distributed devices, with only model updates shared, never the raw data.
  • Differential Privacy: Noise is mathematically introduced into datasets or outputs to prevent identification of individuals.
    On-Device / On-Premises Inference: AI models are executed where data resides, reducing data exposure risks.

This approach is especially relevant in regulated industries like healthcare and finance, where data cannot be transferred to third-party services without strict compliance.

What’s Wrong With Public AI?

Using public AI is convenient, but with increased use come increased risks. These AI technologies typically rely on datasets that are publicly available, crowd-sourced, or scraped. Users feed in sensitive data, and those inputs might stick around longer than expected.

This becomes a problem when that same AI starts surfacing confidential data, prompts, or code snippets in unrelated outputs. Data reuse is a common issue, and many platforms offer no guarantees that user inputs won’t train future models.

Worse, these models often run in public cloud environments with minimal runtime protections. Enterprises that care about regulatory compliance (i.e. HIPAA, GDPR, or internal policies) are stuck between two bad choices: use non-confidential AI and risk exposure, or skip AI adoption entirely. Neither scales.

And while large language models might deliver strong performance, these leaks aren’t delivering peace of mind. This is the privacy paradox: everyone’s using open-access AI, everyone’s feeding it personal data, but few trust it.

How Private AI Differs from Confidential AI

Private AI and Confidential AI are often bundled together, but they address different layers of the privacy stack.

Private AI operates at the software level, using frameworks, encryption techniques, and decentralized learning protocols to keep data private. But it stops short of safeguarding the full LLMS infrastructure.

Confidential AI is built on trusted execution environments (TEEs) and protects data in use. This means your dataset, AI model, and inference process are isolated from everything, even the cloud provider itself. TEEs ensure computation happens in an encrypted, tamper-proof bubble.

In essence, Confidential AI elevates Private AI. It adds infrastructure-level guarantees to privacy-preserving AI workflows.

The New Angle: Confidential AI, Reinvented for Web3

If Confidential AI elevates Private AI, then iExec elevates Private AI. iExec combines Confidential AI with blockchain-based verification so developers can build decentralized, auditable AI services that require zero trust.

Think about deploying a generative AI model in healthcare or finance. With iExec, every stage of the process (from prompt to AI outputs) is secured in TEEs, logged on-chain, and governed by smart contracts. This isn’t just about security. It’s about creating AI environments where trust is enforced.

As a Gold Member of the Intel Partner Alliance, iExec has integrated Intel TDX into its Confidential AI stack. Effortless Confidential AI means a workflow where developers don’t need to rewrite their models or battle complex syscalls. AI workloads run securely, and verifiably, from day one.

Real-World Use Cases of Confidential AI

Confidential AI unlocks a wide range of secure AI applications across sensitive domains:

  • Healthcare: Train AI models on distributed patient datasets using federated learning. Then run inference in TEEs for HIPAA-compliant diagnostics.
  • Finance: Run risk models or fraud detection systems on proprietary data without exposing it to the public cloud.
  • Marketing: Leverage generative AI for hyper-personalized messaging without ever collecting private data.
  • AI Agents on the Edge: Enable machine learning at the edge with private Gen AI that never calls home.

One standout is iExec’s Private AI Image Generation, which uses encrypted prompts to generate visuals without storing or reusing user data. Everything is processed in a secure enclave. No logging, no reuse, no surprises.

The future of AI is private, not public.

Publicly available AI has delivered massive value but comes with real tradeoffs. The need for privacy-first AI infrastructure is no longer a niche concern. It’s the foundation for deploying AI at scale in a way that protects users, safeguards private data, and meets global compliance standards.

Private AI is the critical step to keep data local, decentralized, and under user control. But to truly future-proof your AI operations, Confidential AI is the missing layer: secure AI model training, confidential inference, and infrastructure-level isolation.

iExec is helping define the future of AI by building the AI infrastructure for a decentralized, privacy-first future. A future where powerful AI doesn’t require blind trust.

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