Case & CodeA FIELD GUIDE TO AI
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Intermediate

Data residency

In plain words

Which country the data is stored and processed in.

The fuller definition

Data residency refers to the geographic locations where data is stored or processed, as defined by the relevant service and agreement.

Where a document goes: two routes
LOCAL
  1. Your computer
  2. Model running on it
  3. Answer stays on it

Confidentiality depends on the machine and anything else connected to it.

CLOUD
  1. Your computer
  2. Provider's servers
  3. Storage, logs, possibly training
  4. Answer returned

Confidentiality depends on the contract, the account tier, and the settings in force.

Neither route is safe by default. The question is the same for both: who can see the material, where is it kept, and for how long.

A concrete example

A review asks separately where primary storage, inference, logs, and backups are located.

The distinction that matters

A storage-region setting may not describe every processing step or resolve all confidentiality questions.

Related terms

Where it is taught

Test an AI workflow on work you can assess

Source and further reading

Anthropic · Evaluating AI agents

The definition and example are written for this library. The link gives background, official documentation or legal authority as labelled. Legal scope depends on the jurisdiction and current text; product features depend on release and settings.

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