The policy my company has implemented is the opposite. AI use is allowed, but no confidential client information is to be sent to any cloud AI service. Logic is that if we don't have an actual NDA with OpenAI (or whoever), their privacy policy is not robust enough for us to take on that liability.
Interested in your thoughts on that!
Edit: we're not a software company. We design medical devices, so nearly all data we have is confidential.