Data Classification

Overview

Data classification is used to identify and categorize data flowing through AI systems based on sensitivity and risk.

It enables Peridot to enforce policies and control how data is used across models and integrations.

Why Data Classification Matters

AI systems often process sensitive information, including:

  • Customer data

  • Internal documents

  • Financial or operational data

Without classification:

  • Policies cannot be applied effectively

  • Sensitive data may be exposed

  • Governance becomes inconsistent

How Classification Works

Peridot classifies data using:

  • Content analysis

  • Metadata

  • Source systems

  • User context

Each request is evaluated and tagged with a classification level.

Classification Levels

Examples:

  • Public

  • Internal

  • Sensitive

  • Restricted

These levels can be customized per organization.

How Classification Is Used

Classification informs:

  • Policy enforcement

  • Routing decisions

  • Incident detection

  • Access control

Example

A request containing sensitive customer data:

  • Classified as “Sensitive”

  • Blocked from external models

  • Routed to approved system

  • Logged and monitored

In Production

  • Classification happens in real time

  • Results are used across all policies

  • All decisions are logged and auditable

Best Practices

  • Define clear classification levels

  • Continuously refine detection rules

  • Combine classification with policies

Next Steps


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