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Data Residency

Rules about where data may be stored or processed.

Plain-English explanation

Data residency matters for privacy, compliance, and enterprise procurement. It affects model hosting, logging, backups, and vendor selection.

Why it matters

Data Residency matters because it affects how AI systems are designed, evaluated, priced, or trusted. Knowing the term helps you ask better questions and avoid vague implementation decisions.

  • Ask how it changes quality, cost, speed, or safety.
  • Look for concrete examples in the workflow you are building.
  • Document the tradeoff before choosing a tool or architecture.