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> Enabling the feature in Workspace says that “you agree to let Google Workspace use your Workspace content and activity to personalize your experience across Workspace,” according to the settings page, but according to Google, that does not mean handing over the content of your emails to use for AI training.

Google be like: "trust me bro"

It sounds like you have some serious knowledge gaps about AI. It's perfectly normal to use AI on a dataset without incorporating that dataset into training a new AI model. If you download a free model and run it offline on your data, your data doesn't get magically incorporated into the model on the site you originally downloaded it from.

This is the same thing, and it's backed by a contract and the threat of lawsuits from the many businesses using Google Workspace.

Some people worked on this. They don’t train on it directly. They use AI to rewrite the content “privacy-safe” then train on that….
Poor AI, reading all those ad emails...
The only reason I am still using gmail is due to choice paralysis. I do not know which email service to choose and pay for. I do not like Proton. Is Fastmail the way to go? There is also the German one posteo. Should I just use Apple's mail? I'm taking suggestions if you have anything to share.
I've been on Fastmail with my own domains for 4 years now, having been fully Gmail since 2004. The transition was seemless, the apps are solid and I can't imagine ever going back. The only option I'd consider would be full self-hosting, but I really can't justify the effort to maintain the one service where I need very high uptime.
With so many settings spread across multiple sections, especially in Workspace accounts, it's challenging to keep track of how existing settings are affected by each new addition. I generally review these regularly, yet find surprises now and then.

Knowing what setting does what in Gmail is becoming difficult by the day.

When you disable all of these features, eventually it turns off email categorisation.

At first this was annoying to me because it’s obviously a very good feature. But the last few weeks have been quite revealing: I’ve been receiving and unsubscribing from tons of emails I had no idea I even received regularly, because categories buried them away.

I wonder how much of newsletter marketing (and paid email marketing) is being propped up by the GMail categories just silently ingesting tons of stuff that people never read or see (but also never unsubscribe from)

I feel like the same thing happened 20 years ago when gmail was introduced and the words were "Google reads your emails to serve you ads".
Interestingly, “we do not use your Gmail content for training our Gemini AI model” (what they said) does not mean the same thing as “we don’t use your Gmail content to train AI” (what was asserted).

Anyone using Gmail and expecting it to be private or not leveraged against them is a fool.

Who cares? I'm happy with Tuta Mail, they said they won't join the AI bandwaggon.
Google is making both the comunications and the AI disable as arcane as might be legally defensible. They know what they are doing is wrong, so they are setting up their future legal argument for the inevitable class action lawsuit.
The fact that Gmail doesn't allow you to customize or expand your categories beyond the 4 it gives you frustrate me beyond belief. That, and the fact that there are countless examples of email sources that no matter how many times you move it to the category you want and tell it to "send all emails from x to category from now on," it continues to fail to filter them unless you make your own filter. And then managing the filters is a pain in the ass with a UX that hasn't been updated for 15 years, and also their labeling system is stupid because selecting a parent label only shows you emails with that EXPLICIT label instead of including all children labels.