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How to write a privacy policy for an AI app

Updated 2026-10-21 · 7 min read

If your app collects an email address, you need a privacy policy. If it sends user text or files to an AI model, the policy needs to say so clearly. Here’s what to include, written for solo founders shipping with Lovable, Bolt or Cursor. It isn’t legal advice, but it will keep you from launching with a blank page or a template that doesn’t describe your app.

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Do I legally need one?

  • California (CalOPPA): any commercial website that collects personal information from California residents must post a privacy policy.
  • EU/UK (GDPR): if you have EU or UK users, you must tell them what you collect, why, your legal basis, who you share it with and their rights.
  • Platforms: Stripe, Google and Apple sign-in, the App Store, Google Play and most ad networks require a privacy policy URL.

The sections an AI app needs

1. What you collect

Account data (email, name), content users submit (prompts, files, generated output), payment metadata, and usage/device data (IP, browser, pages).

2. How AI processing works

Say plainly that user inputs are sent to a third-party model provider to generate results. Name the provider, link its policy, and state whether data is used for training. For example, OpenAI says API data isn’t used to train its models by default, and API providers may keep inputs for a limited time for abuse monitoring. Check your provider’s current terms and describe them accurately.

AI features: When you use [feature], the text or files you submit are sent to [OpenAI / Anthropic] to generate your result. They process this data on our behalf and, under their API terms, do not use it to train their models by default. Do not submit sensitive personal information you are not permitted to share.

3. Service providers (sub-processors)

List every service that touches user data. A typical AI-built stack:

ServiceWhat to say
Supabase / FirebaseHosts database, authentication and file storage
Stripe / Lemon SqueezyProcesses payments; you never see full card numbers
OpenAI / AnthropicProcesses submitted content to generate AI output
Google Analytics / PostHogMeasures usage with cookies or identifiers
Resend / SendGridSends transactional email
Vercel / NetlifyHosting; may log IP addresses for security

ShipGrader detects these services from your live site and pre-fills them in the Full Report’s privacy policy starter.

4. Cookies and analytics

Distinguish essential cookies (login sessions) from analytics and marketing cookies. EU and UK visitors must opt in to the non-essential ones, so you need a consent banner. Cookieless analytics (Plausible, Fathom) avoid the problem.

5. Retention and deletion

Say how long you keep account data and generated content, and how users can delete their account. Pick a number you can actually honor, such as 30 days after a deletion request.

6. User rights and contact

Access, correction, deletion, export, and objection for GDPR; right to know and delete for CCPA/CPRA. Give a real contact email and respond within 30 days.

7. Children, international transfers, security, changes

State your minimum age (13+, or 16+ in parts of the EU), note that providers may process data in the US, describe your basic safeguards (HTTPS, access controls, RLS), and explain how you’ll notify users of changes.

Common mistakes

  • Copying a generic template that mentions services you don’t use, while leaving out the ones you do.
  • Promising “we never share your data” while sending prompts to an AI provider.
  • Writing “we delete data immediately” when your database backups keep it for 7–30 days.
  • No link to the policy from the sign-up form or footer.

Next step

Run a free scan. If ShipGrader can’t find a privacy policy, it flags it. The $29 Full Report includes a starter Privacy Policy, Terms and Refund policy pre-filled with the services detected on your site.

Want the full fix list?

The $29 Full Report lists every finding with step-by-step fixes, plus Privacy Policy, Terms and Refund starter text written for the services we detect in your app.

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