Are we talking about the company sending back private information through its client to « fight » model distillation?
Enterprise contracts are checked and agreed by lawyers. The contract states no training.
If the provider fucks up, there are actual monetary damages defined for breach of contract.
I get that in principle that there's no retention, but these are powerful models that can comprehend, paraphrase and summarize your logs for the sake of "product" improvement. Who knows what's collected here.
Big tech spends hundreds of millions in high powered lawyers, audit logs, and contractual agreements with the sole purpose of proving your point wrong.