Gmail's Gemini AI Update: What UK Businesses Need to Know About Email Privacy
Google's Gemini AI in Gmail raises real privacy concerns for UK businesses. Learn what's changed, GDPR implications, security risks, and how to protect your business data.
Google's Gemini AI in Gmail raises real privacy concerns for UK businesses. Learn what's changed, GDPR implications, security risks, and how to protect your business data.

Google has been quietly rolling out Gemini AI integration across Gmail throughout 2024 and 2025, sparking legitimate privacy and security concerns for businesses. Whilst viral social media posts claiming a sudden switch-on date of 10th October 2025 are misleading, the underlying issues are real, and UK businesses need to understand what's happening to their email data.
Google didn't flip a single switch on a specific date. Instead, they've been gradually integrating Gemini AI into Gmail's infrastructure since mid-2024. The key change that's causing concern is how Gmail's "Smart Features and Personalisation" settings now operate.
When these features are enabled, Google's AI analyses your emails, attachments, Google Drive files, and account activity to power features like Smart Compose, suggested replies, email summaries, and Gemini-powered assistance. The controversy centres on reports that these settings are now switched on by default for many users, rather than requiring explicit opt-in consent.
For businesses, this means client communications, contracts, financial data, and confidential information flowing through Gmail could be processed by AI without explicit awareness or consent from either party.
Here's something critical for London-based businesses: if you're in the UK, EU, Switzerland, or Japan, Gmail's smart features are turned off by default due to GDPR and local data protection laws.
This means UK businesses currently have stronger privacy protections than their US counterparts. However, this doesn't mean you can ignore the issue entirely. Individual users within your organisation may still manually enable these features, and the regulatory landscape can shift. Understanding what's happening and maintaining control over your data processing settings remains essential.
Beyond privacy concerns, there's a documented security risk that affects up to 2 billion Gmail users. Security researchers have confirmed a vulnerability where attackers can embed hidden prompts in emails that manipulate Gemini's AI-generated summaries.
Here's how it works: an attacker sends an email containing hidden instructions that Gemini processes when generating its summary. These instructions can make the AI display fake security alerts, fraudulent payment requests, or urgent action items, all whilst bypassing traditional email security filters because the malicious content only appears in the AI-generated summary, not the original email.
This represents a new threat vector that traditional security awareness training doesn't cover. Your team might be trained to spot phishing emails, but are they prepared to question AI-generated summaries that appear to come from Gmail itself?
Let's be clear about something: email has never been a secure communication channel unless you're using end-to-end encryption. Even before Gemini, Gmail was scanning every email for spam filtering, malware detection, and (until 2017) ad targeting purposes.
What's changed isn't that Gmail is analysing your emails. It's what's being done with that analysis. Previously, the processing was primarily for security and filtering. Now, that same data is being used to train AI models and power features that, whilst convenient, create additional privacy and security considerations.
For businesses handling confidential client data, financial information, or proprietary communications, this expansion of data use should trigger a review of your email practices and data handling policies.
For UK businesses, particularly those handling client data under GDPR, this raises important compliance questions.
Lawful basis for processing: If Gmail is using AI to analyse emails containing client data, what's the lawful basis? If you're a data processor handling client information, you may need to update your privacy policies and data processing agreements.
Third-party processing: When you send an email through Gmail, is Google now a sub-processor of that data? Do your clients know their information might be processed by AI?
Data minimisation principles: GDPR requires you to collect and process only the data necessary for your purposes. If Gmail's AI is analysing attachments, Drive files, and email content beyond what's needed for email delivery, does this comply with data minimisation principles?
Right to object: Under GDPR, individuals have the right to object to automated processing of their personal data. If a client's information is being processed by Gmail's AI without their knowledge, this right may be compromised.
These aren't hypothetical concerns. If you're handling client data through Gmail and smart features are enabled, you may need to conduct a Data Protection Impact Assessment (DPIA) and update your data processing documentation.
If you decide to opt out of Gmail's smart features, here's the process:
Important: You need to disable both settings. Google separates Workspace smart features from those used across other Google products, and both can access your email data. Disabling only one leaves a pathway for AI processing.
If you manage Google Workspace for your organisation, you can control these settings centrally through the Admin Console:
This allows you to enforce privacy settings across your organisation rather than relying on individual users to opt out. Given the compliance implications, this should be a priority for any UK business handling client or confidential data through Gmail.
This Gmail situation highlights a broader trend in business technology: convenience often comes with hidden privacy and security trade-offs. As AI becomes increasingly integrated into everyday business tools, organisations need to develop clear policies around AI-assisted services.
Consider these questions for your business:
Email alternatives: Should confidential communications move to end-to-end encrypted platforms like ProtonMail for sensitive discussions?
Policy updates: Do your information security policies address AI processing of business communications? Do employees understand when to use email versus more secure channels?
Client communication: Should you inform clients that business communications may be processed by AI if they email you at Gmail addresses?
Vendor assessment: As more business tools integrate AI, how will you assess and manage the privacy implications of each service?
Training needs: Do your team members understand the limitations of email security and when to escalate to more secure communication channels?
Gmail isn't unique. Microsoft is integrating Copilot across Microsoft 365, Slack has AI features analysing conversations, and virtually every business tool is racing to add AI capabilities. Each integration brings similar questions about data processing, privacy, and security.
The difference is in transparency and control. Some vendors are clear about what data their AI accesses and provide granular controls. Others make assumptions about implied consent and bury opt-out settings in nested menus.
For UK businesses, particularly those in regulated industries or handling sensitive client data, this requires a systematic approach:
There's no universal answer. It depends on your business, your compliance requirements, and your risk tolerance.
Consider disabling if:
The features might be acceptable if:
The sensible middle ground:
At Stabilise, we advise a layered approach to email security that assumes email is never fully private:
Remember, this isn't just about Gmail. It's about developing a comprehensive approach to data security as AI becomes integrated into every business tool you use.
Here's the uncomfortable truth: if you're relying on email for secure business communications, you're building on a foundation that was never designed for security. Email protocols were created in an era when the internet was a small network of trusted academic institutions. Bolt-on security measures like TLS encryption only protect data in transit. They don't protect it from the email provider itself.
Gmail's Gemini integration hasn't made email insecure. It's simply made visible what was always true: your email provider can read your messages, and now they're being explicit about using AI to do so at scale.
For businesses, this is an opportunity. It forces honest conversations about what communication tools are appropriate for different types of information. It pushes organisations to adopt genuinely secure alternatives for confidential communications. And it highlights the need for clear policies about data handling in an AI-enabled world.
Don't wait for the next privacy controversy to review your email practices. Start now:
The businesses that will thrive in an AI-integrated world aren't those that resist every new technology. They're the ones that understand the trade-offs, make informed decisions, and maintain control over their data practices.
Gmail's Gemini rollout is just the beginning. Every business tool you use will face similar integration decisions in the coming years. The question isn't whether AI will analyse your business communications. It's whether you'll maintain control over how, when, and under what terms that happens.