HubSpot backs down over using customer data for AI
HubSpot reversed a controversial policy change just four days after announcing it. The CRM company had quietly updated its terms on July 1 to opt all customers into a data-pooling feature for an AI-powered sales lead tool, using contact and employer data stored in their accounts. The backlash was immediate, driven by sales leaders and RevOps teams on LinkedIn who argued the data belonged to customers, not HubSpot. Chief product and technology officer Duncan Lennox apologized, called it 'a mistake,' and committed to making any future customer data use opt-in only. The episode mirrors similar controversies at Slack (2024) and Zoom (2023), and highlights a broader tension: SaaS vendors racing to fuel AI features with customer data are finding that default opt-out is increasingly a trust-breaking move, especially when the data in question is a company's competitive asset.
