Do companies actually allow tools like Cursor AI or are they mostly restricted?

I’m trying to understand what’s actually happening in real companies when it comes to AI tools. Are people using tools like Cursor (AI that can read and modify your codebase), or is it mostly limited to Copilot / simple chat AI? From what I’ve seen, some places allow basic AI but block things like file uploads or anything that touches the repo. What I don’t fully understand is the reasoning behind the restrictions. I keep hearing it’s about “data leaving the company”, but companies already use a lot of external services like cloud providers, GitHub, APIs, etc. Also, tools like ChatGPT or Cursor claim they don’t train on your data and have enterprise/privacy guarantees, so I’m not sure where the real risk is. And the “competitor risk” argument doesn’t make much sense to me either — I don’t see how another company would somehow get access to your code just because you used an AI tool. So I’m trying to understand if I’m missing something here. What’s it actually like where you work? Are these tools allowed, restricted, or somewhere in between?