I'm curious how this is done effectively assuming no source should be sent to a model hosted remotely. Are there foundational model toggles for using inference and embedding but not using data for training?

All the big providers offer no-training/retention guarantees (either by default, or as a toggle, or upon request). For many high security environments though I'd expect everything to be hosted on-prem or at minimum on company-controlled instances, which does limit your model options somewhat.

My employer has such contracts for some use cases, but actually forbids use of code completion/generation due to IP concerns.

As someone else stated, there are enterprise services that offer solutions that make it so your company data isn't consumed, however, I think pretty soon we're going to see a lot of companies maintaining models locally in-house.

I think this is especially true given that Intel is shifting its focus toward an affordable in-house solution for training AI models locally with its upcoming GPUs.

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