In the AI analogy, it is a bit closer in my mind if the travelers would say "Don't worry your onions and carrots and garnishes won't be consumed by us! Put them in the pot and we will strain them out, they are still yours to keep!"
We, the villagers, are dumping our data into the AI soup with a promise that it won't be used when we are using the API or check a little "private mode" box.