AI tokens often use encryption, zero-knowledge proofs, and secure multi-party computation (SMPC) to protect sensitive AI data. Off-chain AI computations keep data confidential, while blockchain stores only proof or metadata. Decentralized storage solutions like IPFS or Filecoin help manage data securely. Token holders may control access via permissioned smart contracts. Combining these techniques balances transparency with privacy, safeguarding user data in AI token ecosystems.