CapSource Artificial Intelligence Transparency Statement

Effective Date: May 30, 2025
Last Updated: June 2, 2026

CapSource is an education technology platform that helps academic institutions, students, educators, and industry partners collaborate on real-world experiential learning projects. As artificial intelligence (“AI”) technologies continue to evolve, CapSource is committed to using AI responsibly, transparently, and in ways that support, not replace, human judgment, educational integrity, student development, and institutional trust.

This Artificial Intelligence Transparency Statement explains CapSource’s current and planned use of AI, our approach to protecting institutional and personal data, and the principles that guide how AI-enabled capabilities are designed, reviewed, deployed, and governed within our platform.

1. Current Use of AI

CapSource currently uses AI in a limited, optional, assistive capacity within certain platform workflows. These AI-enabled features may help authorized users draft, structure, summarize, or improve organization profiles, user profiles, project descriptions, curriculum-aligned project scopes, collaboration prompts, discussion guides, learning artifacts, and related project-based learning content.

Examples of AI-assisted functionality may include:

  • Drafting project briefs, project scopes, timelines, learning outcomes, and collaboration prompts based on educator or industry partner input;
  • Helping educators and administrators translate experiential learning goals into structured programs, project formats, and requests for project proposals;
  • Helping industry partners organize business challenges into student-ready project descriptions;
  • Supporting the creation of case study, mentorship, or experiential learning materials;
  • Assisting users with platform navigation, content organization, and workflow efficiency where AI-supported help features are available.

AI-generated content is intended to serve as a draft or suggestion only. Users are responsible for reviewing, editing, approving, and validating AI-assisted outputs before relying on them or making them available to others through the platform.

CapSource does not use AI to make final academic, grading, admissions, disciplinary, employment, financial, healthcare, eligibility, or other high-impact decisions. CapSource does not use AI to evaluate students or determine student outcomes. CapSource’s core experiential learning workflows can be used without AI-assisted drafting where an institution elects not to use AI-enabled features.

2. Planned AI Capabilities

CapSource may introduce additional AI-enabled features in the future to improve collaboration, communication, efficiency, and user experience across the platform. Potential AI-supported capabilities may include, but are not limited to:

  • Helping students, educators, administrators, and industry partners collaborate more effectively on experiential learning projects;
  • Supporting project scoping, content organization, curriculum alignment, and collaboration workflows;
  • Assisting users with drafting, summarizing, structuring, or improving project-related content;
  • Recommending relevant resources, next steps, project structures, or platform actions;
  • Improving administrative efficiency for educators, institutions, and industry partners.

CapSource does not intend for AI features to make final academic, employment, disciplinary, admissions, grading, eligibility, financial, healthcare, or other high-impact decisions without appropriate human involvement.

3. Human Oversight

CapSource’s approach to AI is based on human-in-the-loop oversight. AI-enabled features are intended to assist users and administrators, not to replace professional, academic, institutional, or managerial judgment.

Users are responsible for reviewing AI-generated or AI-assisted outputs before relying on them. CapSource designs AI features so that users understand when AI is involved and can exercise appropriate judgment over AI-assisted content, recommendations, and drafts.

4. Institutional Data and AI Processing

CapSource recognizes that institutional data, student data, and education records may be subject to institutional policies and applicable privacy laws, including FERPA and other relevant federal, state, and international privacy frameworks.

CapSource’s AI implementation strategy is designed around the following commitments:

  • Institutional data will be processed only for authorized platform purposes.
  • Institutional data will not be sold to third parties.
  • Institutional data will not be shared with advertising networks or data brokers.
  • Institutional data will not be used for unrelated marketing, profiling, or advertising purposes.
  • Institutional data will not be used to train shared, public, or third-party AI models by default.
  • Institutional data will not be used to train or improve AI models unless such use is expressly authorized through a separate written agreement, disclosed to the institution, and consistent with applicable law.
  • AI processing, where implemented, will be limited to approved use cases consistent with institutional agreements, privacy notices, and applicable law.

5. Data Categories Not Required for Standard Platform Use

CapSource is not a system of record for academic, financial, healthcare, identity management, or student information systems. CapSource serves as a collaboration and experiential learning management platform that facilitates project-based learning, industry engagement, program administration, and outcome documentation.

As part of its standard experiential learning workflows, CapSource does not require payment card information, protected health information, biometric information, Social Security numbers, financial account information, student grades, transcripts, disciplinary records, or access to institutional internal networks.

Typical data elements processed through CapSource include basic profile and collaboration information such as names, email addresses, institutional or organizational affiliations, roles or titles, project participation, team or project assignments, project preferences, project descriptions, project materials, deliverables, feedback, and related program administration records.

6. Use of Third-Party AI Services

CapSource may use reputable, commercially licensed, API-based AI providers or subprocessors to support limited AI-assisted functionality. CapSource evaluates third-party AI providers for appropriate privacy, security, contractual, and compliance safeguards.

Where third-party AI providers are used, CapSource seeks to ensure that applicable terms, policies, or contractual protections address confidentiality, data protection, security, access restrictions, subprocessors, retention, and permitted use of data.

CapSource does not knowingly route institutional data through public, consumer-grade, or unmanaged AI tools in a manner inconsistent with institutional agreements, applicable privacy obligations, or CapSource’s internal data handling practices.

7. Data Minimization and Sensitive Data Protection

CapSource is committed to data minimization. AI features are designed to use only the information reasonably necessary to provide the relevant functionality.

CapSource implements safeguards to reduce the risk that sensitive institutional, student, personal, or regulated data is unnecessarily submitted to, retained by, or processed through AI systems. These safeguards may include business rules, access controls, user guidance, input validation, logging, monitoring, and restrictions on AI use for sensitive data categories.

Users should not submit highly sensitive data into AI-enabled features unless the feature has been specifically authorized and configured for that purpose.

8. Training Data and Model Improvement

CapSource does not use institutional data, student data, project content, user profile information, prompts, outputs, or platform content to train, fine-tune, personalize, or improve AI models by default.

CapSource does not currently train proprietary AI models using institutional or student data. Where CapSource uses third-party AI services, CapSource seeks to use commercially licensed API-based services with commitments that customer API data is not used to train or improve shared models unless the customer affirmatively opts in.

CapSource will not use institutional data to train or improve a shared, public, or third-party AI model unless such use is expressly authorized through a separate written agreement, disclosed to the institution, and consistent with applicable law and institutional requirements.

9. User Control, Institutional Configuration, and Opt-Out

CapSource seeks to provide institutions with appropriate control over AI-enabled functionality. Where technically feasible and appropriate, CapSource designs AI features so they can be enabled, disabled, limited, or configured at the tenant, institution, role, or user level.

Institutions may request AI-disabled workflows, data minimization practices, retention or deletion parameters, access limitations, or other configuration options based on institutional policy, contractual requirements, or risk management needs.

CapSource does not build AI profiles of institutions, educators, students, or industry partners for unrelated profiling, advertising, or monetization purposes.

If an AI-related incident, malfunction, security concern, or privacy concern arises, CapSource intends to maintain the ability to disable relevant AI functionality in a timely manner while the issue is investigated and resolved.

10. Security, Logging, and Monitoring

CapSource applies security-by-design and privacy-by-design principles to AI-enabled features. AI-related security controls may include:

  • Role-based access controls;
  • Authentication and authorization safeguards;
  • Encryption in transit and at rest where applicable;
  • Logging of relevant AI interactions, including user, date, and action taken where appropriate;
  • Monitoring for misuse, anomalous activity, or unintended processing;
  • Review of AI-related vendors, dependencies, and software supply-chain risks;
  • Procedures for disabling or remediating AI features in response to incidents.

AI logs and related records are protected against unauthorized access and handled in accordance with CapSource’s broader security, privacy, and retention practices.

11. Accuracy, Limitations, and User Responsibility

AI systems can produce inaccurate, incomplete, biased, outdated, or misleading outputs. CapSource does not represent AI-generated content as infallible or as a substitute for professional, academic, legal, compliance, or institutional review.

Users should independently review AI-assisted outputs before relying on them, especially in academic, administrative, employment-related, legal, compliance, financial, or other sensitive contexts.

CapSource works to design AI features that support transparency, explainability where feasible, and appropriate user review.

12. Bias, Fairness, and Responsible Use

CapSource recognizes that AI systems may introduce or amplify bias if not designed and governed carefully. CapSource’s AI governance approach considers fairness, accessibility, privacy, security, transparency, and potential impacts on students, educators, institutions, and industry partners.

CapSource does not use AI to make fully automated decisions that materially affect a student’s academic standing, employment opportunity, eligibility, disciplinary status, or access to educational services without meaningful human involvement.

13. Accessibility

CapSource is committed to making its platform accessible and usable. AI-enabled features, where implemented, are evaluated as part of CapSource’s accessibility practices and are designed to support inclusive user experiences consistent with CapSource’s accessibility commitments.

14. Privacy Rights and Data Subject Requests

CapSource supports applicable privacy rights and institutional data protection obligations. Where AI processing is involved, CapSource works to ensure that personal data access, correction, deletion, stop-processing, and other applicable requests can be addressed in accordance with applicable law, institutional agreements, and CapSource’s privacy procedures.

15. AI Governance and Risk Management

CapSource maintains and continues to mature its AI governance approach to support responsible AI adoption. This approach may include:

  • Review of proposed AI use cases before deployment;
  • Privacy, security, and risk assessment for AI-enabled features;
  • Internal review of AI integrations as part of the product development lifecycle;
  • Evaluation of third-party AI providers;
  • Human oversight expectations;
  • Employee guidance on acceptable AI use;
  • Data minimization and sensitive data restrictions;
  • Model risk mitigation practices, including documentation of AI integrations, safeguards, fairness considerations, and non-discrimination principles;
  • Monitoring, logging, and incident response procedures;
  • Periodic review of AI features and controls;
  • Alignment with recognized AI risk management practices where appropriate.

CapSource’s AI governance approach will evolve as its AI capabilities mature and as legal, regulatory, institutional, and industry expectations continue to develop.

16. Employee and Contractor Use of AI Tools

CapSource employees and contractors are expected to handle confidential, institutional, student, and personal data responsibly. CapSource maintains internal guidance for the acceptable use of AI tools, including restrictions on entering sensitive, confidential, regulated, or institutional data into unapproved AI systems.

Employees and contractors working with AI-enabled functionality are expected to receive appropriate guidance or training on responsible AI use, data privacy, security, and ethical considerations.

17. Internal Use of AI and Automation

CapSource may use AI-enabled tools internally to support business operations, product development, workflow automation, reporting, quality assurance, engineering assistance, documentation, customer support, and administrative efficiency.

Internal AI use is intended to improve the quality, reliability, and efficiency of CapSource’s services. CapSource employees and contractors are expected to use AI tools responsibly and in accordance with CapSource’s privacy, security, confidentiality, and acceptable-use expectations.

CapSource personnel may not enter sensitive institutional data, student records, regulated personal information, confidential customer information, payment information, protected health information, Social Security numbers, grades, transcripts, disciplinary records, or other high-risk data into unapproved AI systems.

Where internal AI tools are used, CapSource seeks to apply appropriate safeguards, including data minimization, access controls, vendor review, human oversight, and restrictions on the use of confidential or regulated data.

18. Call Recording, Transcription, and Service Quality

CapSource may record, transcribe, summarize, or analyze meetings, calls, demos, support conversations, or other communications for purposes such as quality assurance, training, service improvement, documentation, customer support, follow-up, product feedback, and improving the experience of our users, customers, partners, and network members.

Where required by law or applicable policy, CapSource will provide notice or obtain consent before recording calls or meetings. Call recordings, transcripts, summaries, and related notes are handled in accordance with CapSource’s privacy, confidentiality, security, and retention practices.

CapSource does not use call recordings or transcripts to train shared, public, or third-party AI models by default. If AI-enabled transcription, summarization, or analysis tools are used, CapSource seeks to use approved tools and apply appropriate safeguards to protect confidential, institutional, student, and personal information.

19. No Sale of Institutional or Student Data

CapSource does not sell institutional data or student personal data. CapSource does not disclose institutional data to data brokers or advertising networks for unrelated advertising, profiling, or monetization purposes.

20. Changes to This Statement

CapSource may update this Artificial Intelligence Transparency Statement from time to time as our AI capabilities, governance practices, legal obligations, or institutional requirements evolve. Updates will be reflected by revising the “Last Updated” date above.

21. Contact

Questions about CapSource’s AI practices, data privacy, or security commitments may be directed to:

CapSource
Email: [email protected]
Website: https://capsource.io/contact/